Entrepreneur in services, are you looking for a financing solution? An alternative to bank loans , the equity loan allows you to carry out your project by very quickly collecting the necessary funds.
Currently, more than 75% of French people work in the tertiary sector, that is to say, that of services. The share of this sector has even gained 22 points over the past decades. Another very telling figure, 81% of new companies created in France in 2016 belong to the service category. The hotel and restaurant sectors are the sectors with the strongest growth in business volume, followed closely by financial intermediation.
Lately, new services have multiplied, digital revolution requires.
Any company needs to finance its computer equipment, works and fittings of its premises, the fleet of vehicles for salespeople, or even its furniture and equipment.
Financing your investments by credit will allow you not to draw on your cash. Business leaders: Cash is the sinews of war!
Beyond the material needs, the service company also needs to finance the intangible. Behind this less tangible term, expenses linked in particular to innovation. Intangible financing can allow, among other things, recruitment, training, R&D or even the redesign of a website. So many initiatives aimed at improving competitiveness not linked to price, but rather to image and quality.
Today, intangible financing is considered by specialists as an indicator of the progress of the economy, because it contributes to the export and growth of an entire country.
Certain sectors are particularly carriers of innovation in services. Among them, energy, business services, health and even public administration.
Following a time lag between cash inflows and outflows, or following a temporary decline in activity, companies may need to finance their cash flow . Without good cash flow, SMEs quickly risk suffocation or even death. Hence the constant concern of business leaders to maintain this positive cash flow.
To this day, bank loans remain the main solution for financing businesses. Despite the crisis, banks are still granting loans. But it is clear that the conditions for granting have tightened considerably in recent years. Banking institutions are in fact always asking for more guarantees and an extremely well-crafted dossier.
Banks are not the only alternative to find financing . Among the other possible options:
Factoring : It allows you to assign your invoices to a financial institution called "factor". Considerable advantage: The factor therefore pays you the bill! It will go to your customer for payment. However, the cost is relatively high and the factor suffers from a very bad image in France.
Stock / campaign credit : In the event that your activity is seasonal, there may be significant cash flow lags, due to the purchase of substantial stocks. However, sales will be made 3 to 4 months later. Campaign credit therefore allows you to finance your working capital needs. Certain activities such as building trades, agriculture and tourism generally have recourse to campaign credit. The downside is that you have to have an old, smooth relationship with your banker.
Leasing : Also called leasing, this option is ideal for financing equipment without unbalancing the balance sheet. The rented equipment is in fact not included in the balance sheet. Another advantage is that leasing rents are tax deductible. However, the cost is higher than that of a bank loan and some equipment cannot be financed by leasing.
Subsidies : Certain communities such as town halls or Chambers of Commerce and Industry grant subsidies, subject to conditions. Certain criteria as well as a financing plan must be validated beforehand. "
Crowdlending is a brand new financing solution , perfect for all entrepreneurs looking to reach out to people other than banks. It is a participatory money loan, where the lenders are individuals and / or companies. As with a traditional bank loan, an amount is defined and then returned according to the terms of the contract with interest. It is a supervised and regulated practice, where the selection of candidates remains strict. However, it guarantees requesters a quick response (<48 hours) and less red tape . Because everything is done online!
In practice, a crowdlending loan can allow service companies to finance new vehicles, equipment, cash requirements or even new computers . This formula has met with great success since its arrival in France in 2014. The fundraising thus jumped by 200% between 2015 and 2016 and nearly 100 million us dollars have been raised in recent years on digital lending platforms. To be continued !
Service company, take advantage of the financing solutions of whimblegardens.co.uk , the number 1 French crowdlending platform. whimblegardens.co.uk specialists meet all your needs and help you obtain financing from $ 20,000 to € 2.5 million , with loan formulas spanning 12 to 60 months.
Service company, test crowdlending for your material, immaterial or even cash financing needs.