Unless you have enough cash to finance the set-up of your business in France, you must find the necessary capital, through borrowing or a capital increase. It might be easier for you to get the required initial funding in your previous country of residence.
Financing start up costs is never easy. The easiest way is often to ask for a personal revolving loan, without even mentioning the business project you have in mind…
However self-financing the set-up of business in France is not the only option.
French agencies supporting entrepreneurship
French government agencies can also help startups within the first months following their registration or grant SMEs governmental backing. As their goal is the spawning and nurturing of new businesses, necessary backing will be granted in priority to startups or company established in France which are considered as commercially and economically viable. French agencies can also grant your company a zero interest loan to start up your business.
Main types of loans dedicated to startups and SMEs in France are described below.
A loan dedicated to business start up in France : Prêt Création d’Entreprise (PCE)
Though mainly granted by the French agency Oseo, this start-up loan will directly be provided by a French bank. Set up process is relatively quick if you business plan has been properly established.
The Oseo loan amount ranges between €2,000€ to €7,000€. Banks must at least double this amount, but cannot exceed €45,000 in total. The overall loan benefits from a 70% guarantee from Oseo. It must be reimbursed with 4 to 5 years.
Interest rate is set according to market price.
Specific financing
For women entrepreneurs : the Fonds de Garantie à l’Initiaitve des Femmes (FGIF). Women entrepreneurs can request a 70% guarantee from this agency securing a business loan up to 38 000€. Its cost is limited (2.5% of the guaranteed amount). Selection process is thorough and based on the financial forecasts analysis.
