Call on people around you for financing
You can call on people around you in two ways:
- Set up a crowdfunding campaign
- Take out a win-win loan or the Walloon variant ‘Coup de Pouce’
Are you planning a new project, but you don't have enough start-up capital? Present your project on a crowdfunding platform. Anyone interested can invest. All those small contributions together finance the entire project. You recruit your investors mainly via the Internet and social networking sites.
Your advantage? The investors may already be future customers enthusiastically promoting your products in their circles. Thus, you get to enjoy a true 'ink blot' effect.
Are your friends and family eager to support you financially in starting up your own business?
With the Win-Win loan from the Flemish Region, this can be done at a good rate:
- A family member or friend invests up to €50,000 in your business.
- In return, he or she benefits from an annual tax reduction of 2.5% on the outstanding capital.
- The loan is for 8 years. It can be repaid earlier.
- Are you unable to repay the loan? If so, the investor recovers 30% through a one-off tax rebate.
- Is your business going bankrupt? If so, the investor is last in line to be repaid.
- Through the Win-Win Loan, you, as an entrepreneur, can borrow up to €200,000.
Would you like to find out more about the Win-Win Loan? Read the details at pmvz.eu/winwinlening.
Coup de Pouce
The Walloon equivalent of the Win-Win loan is the ‘Coup de Pouce’ loan. It works in a similar way:
- Private investors inject up to €125,000 into the business.
- Repayment takes place after 4, 6 or 8 years.
- In doing so, the investors receive a tax benefit of up to 4% during the first four years and 2.5% from the fifth year onwards.
- It's a subordinated loan: investors are the last to be repaid in case of bankruptcy.
- Entrepreneurs are entitled to a maximum of €250,000 by way of a Coup de Pouce loan.
Only young companies are eligible for this funding (registered in the CBE for less than 5 years).
Would you like to find out more about the Coup de Pouce loan? Go to pretcoupdepouce.be.