Business Loan – The mortgage to Finance the Creation of a Business

 

The creation of a business implies the presence of substantial financial means, which is not always the case for young entrepreneurs.

Indeed, the launch of a new SME is not only with ingenious ideas and a good profile of creator, but it is especially necessary to raise the necessary funds to pay the entrance fee, ask the intervention an expert to do a market study, build a legal file, find a place to rent or buy, invest in equipment, etc.

In the absence of own funds for personal contribution, the project promoter often finds it difficult to find suitable credit. But what about the mortgage loan to finance the creation of a business?

 

The mortgage loan: how does it work?

The mortgage is the solution you need for the creation of your business if you own real estate or land.

The latter will be considered as guaranteed by the bank which will grant you a loan at 50% or 80% of the value of the property, the amount of which will be determined according to the total value of the property put under mortgage, that it is act of a house, apartment or rental property that you own.

With mortgage credit, you have the opportunity to negotiate the terms of the contract by highlighting your profitable business sector and your forecasts in terms of financial results, by opting for a fixed or variable interest rate.

Although the procedure to be followed is more or less complicated with the mortgage loan intended to finance the creation of a company, it represents a reliable guarantee for the bank which will be more inclined to reduce the interest rate of the loan because it can recover his money with the sale of the property in case of non-compliance with the repayment contract.

However, as a borrower, you must provide notary fees and registration fees to the custodian when providing the guarantee, as well as the costs of release when your company has been able to repay everything.

And most importantly, you will have to ask for the consent of your spouse if you mortgage a common good to finance the launch of your business.

 

Other financing solutions for business creation

In addition to the mortgage loan, there are other ways to finance the creation of a business , including the business start-up loan offered by us, which gives you access to a sum of between € 2,000 and € 7,000, repayable out of 5 years and that will be used to cover the start up costs of your business.

You also have the loans of honor and other devices of help to the creators and the system of “Love money” provided by the associates or the close families.

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