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What To know About Project Financing

Payroll Management

Throughout its life, whether to create it, develop it or even pass it on, the company needs financing.

Business financing brings together the resources it must mobilize to meet its various needs. And it is the way of managing its various means of financing which will partly determine the economic situation of the company. 

Given the importance of this management and the crucial choices it involves, getting support is necessary. Focus!

After the idea and the maturation of the business creation project, comes the reality of the needs and the need to find a way to meet them.

The financing of the creation project is the first concern of the leader after the choice of its legal structure!

Which means of financing to choose for your company?

A company’s resources can be grouped into two categories: equity and borrowed capital.

To determine whether to finance their investments with one or other of its resources, companies can seek the help of a corporate finance expert such as Mood Finance in order to be better guided.

Internal financing

It can be self-financing, that is to say, the use of resources from the company’s activity to finance its operating and investment cycle.

The company can also rely on contributions from partners or shareholders to strengthen its capital (personal contribution or capital contributions).

These resources are represented by property titles (shares or shares) allowing them to receive dividends and participate in decision-making. The partners can also make current accounts available to the company, which are presented in the form of a remunerated loan .

External corporate financing

When the founders do not have sufficient funds for business financing , they can choose to bring investors into the capital of their company.

The latter can also go into debt by contracting bank loans or from a credit institution. In this case, several solutions are available to it, in particular the professional loan, the financial rental or the leasing.

In addition, the company has the option of turning to participatory financing or crowdfunding. This allows him, through various platforms, to finance his project from the public, whether individuals, business angels, etc.

In addition, it is possible to benefit from investment subsidies granted by local authorities (State) for business financing (long-term investment).

Even more so during the recent COVID_19 health crisis caused by the coronavirus, to finance an activity or short-term financing, companies can also use the state-guaranteed loan or PGE (subsidized loan).

This bank loan is aimed at all companies (farmers, craftsmen, traders, SMEs, VSEs, ETIs, Startups, micro-entrepreneurs, liberal professions, associations, foundations).

To properly manage the repayment of the PGE for a period of 1 year, the company can in this case be accompanied by an independent financial consulting firm.

Either by a global repayment at the end, or by negotiating with the bank a loan repayable over a period not exceeding 5 years , as well as for the associated financing plans.

Why use an expert for your business financing?

Because of the stakes involved in a company’s financial strategy, it is wise to be accompanied by an expert.

And, with regard to business financing , trusting a versatile financial consulting firm, with expertise and experience, allows you to start on the right foundations from the creation of the business and to choose the best options for its development.

Business financing for creation
Equity investment, bank financing, creation aid, crowdfunding platform, crowdlending (otherwise called love money), for a creation or takeover, the solutions are multiple.

To better face the difficulty of finding financing and to be able to launch his project serenely, the entrepreneur has everything to gain by calling on an expert company.

His support allows him to clearly determine his own funds and to obtain loans to create his business.

It will not only be able to help him find medium-term business financing solutions to fit out his premises and equip his business with equipment, but also to build up sufficient working capital to meet the daily needs of his business.

Business development

A financial advisory firm can also support the entrepreneur in the development of his business. It will thus be able to help it develop its products and its customer portfolio, but also to grow very quickly by acquiring other companies (Build up)

At each stage, and whatever the project, the expert will be able to advise it and help it obtain and optimize the financing and sources of financing required.

Business transfer

The management of the financing of the company also intervenes at the time of its transmission.

Here, the role of the expert company is to help the entrepreneur finance this project by setting up a seller’s loan , a business plan and a financial analysis of the project which will facilitate obtaining bank financing.

However, the financial and legal choices are closely intertwined. The legal and financial strategy determines your future success.

If the financing conditions seem to you to be met, however, you still have to organize the means and know the methods to obtain financing for your business creation.


The nature and sector of activity of the business creation project play a crucial role in the search for financing.

The crisis has not spared certain sectors and we cannot ignore the reluctance of banks and institutions to intervene in these affected sectors, such as restaurants, hairdressers, pharmacists, etc.

Reluctance does not, however, mean the impossibility of financing because each project is unique and deserve to believe!

To find financing, the project must be consistent with the market, ie meet an emerging or existing need. Without potential customers, the project will not find interest and may even lead you to serious difficulties.

Without necessarily doing a market study, you will be able to collect pre-orders or intentions of future customers. This will reassure you and also reassure your financial partners.

The project leader

It is often said that an investor finances as much, if not more, the promoter of the business creation project than the project itself, which is to say the importance of the future leader in the search for financing.

It seems obvious that the project leader must have skills to animate the project he wishes to initiate. The more solid the experience, the more your financial partners will be reassured.

This does not prohibit those who initiate a retraining from creating their own business, but it will be appropriate for them to ensure that they have all the skills or the people who can provide them with these skills.

The financial contribution

Even more today, without contribution no project can be financed! Indeed, it seems difficult for a funder to bet on a project in which the main interested party is not financially involved.


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