Financing a business creation

You must, as a business creator, provide sufficient financing for your business to start your activity in good financial conditions. For this, various means are available to you.

business financing
Before finding funding for your project, you must, as a good manager, calculate your needs in this area. For this reason, the establishment of a business plan is essential because this preparation will lead you to accurately quantify the financing needs of your project.

That said, financing a business creation project can be done by different means.

First of all, there are aids for business creation . Some take the form of reductions in social security contributions

Then, a distinction is generally made between equity contributions . They correspond to contributions of goods or sums of money by the partners.

When the founders do not have sufficient funds, they can choose to bring other people into the capital of their company: investors .

Finally, the company can go into debt by contracting bank financing . Several solutions exist in this area: the professional loan, financial leasing or leasing.

The advantages and disadvantages of variable capital

Most civil and commercial companies can choose between fixed share capital or variable share capital. However, the public limited company (SA) is an exception since its capital must remain fixed. That said, having variable share capital confers many advantages on a company. It allows it to benefit from great flexibility and to provide certain guarantees to its investors. However, this solution is not without drawbacks. It requires, in fact, special attention when drafting the statutes and can lead to a certain instability in society. Here are the advantages and disadvantages of variable capital. The advantages of variable capital Easily change the shareholding structure Thanks to variable capital, the amount of capital