How to get funding to open a business
Those who want to start a business but do not have the necessary resources can apply for a bank loan. However, banks and financial institutions only grant loans on condition that the applicant has sufficient collateral. Otherwise, however, it is possible to obtain credit by resorting to loans to unemployed to open activities granted by various public bodies.
When you do not have the money to meet the initial investment, you need to take advantage of a subsidized loan. A choice that is almost obligatory. But how can you untangle the various financing options?
Let’s start with the loans granted by banks and financial institutions. Those who decide to start a new business can turn to one of the many banks or financial institutions that provide loans to those who aim to become an entrepreneur.
Among the most well-known initiatives are Unicredit’s Start Up New Companies. Loan that allows you to obtain up to 100 thousand USD to be repaid with an amortization plan that extends for a maximum of 7 years. The amortization plan provides for monthly installments and the interest rate can be both fixed and variable.
Who can get it? Only persons registered with the Capital Lender for no more than 21 months have access to Unicredit start-up loans. Other requirements to be met include the issue of an eligible Agree Bank guarantee of not less than 60% of the amount of the loan granted.
Not only. The applicant must also demonstrate that he has own funds equal to at least 30% of the value of the investment plan he wishes to implement.
Funding for Lite Lender Start Up
Lite Lender’s is also very interesting. A credit line that allows aspiring entrepreneurs to get money with which to start a new business. Not only can Lite Lender’s beneficiaries also take over an existing business.
The maximum amount that can be financed is 70% of the investment plan covered by the loan, the repayment plan may extend for a maximum of 10 years. The interest rate can be fixed or variable.
The borrower can also choose to resort to a pre-amortization period, during which they will not be called upon to repay the principal granted. Pre-amortization can last for a maximum of 24 months.
As regards the eligible expenses, Lite Lender’s allows to cover all costs related to the purchase of tangible or intangible assets related to the start of a new business.
Who is it for? Lite Lender’s can be used for both new and young businesses, that is to say, established less than 24 months ago.
We also remind you that Lite Lender selects the most promising Start-ups of the high-tech sector and supports them in their training path. Launched in 2009, the StartUp Initiative program provides for the granting of funds and assistance against registration on the appropriate online platform.
Non-repayable loans for 2017 activities
However, it is not always possible to obtain loans to unemployed people to open businesses from banks and financial companies. In fact, not everyone is in possession of the requirements set by the various banks for access to loans dedicated to those who want to start a business.
How to do in these cases? When it is not possible to obtain credit from a bank or a financial company, it is possible to resort to non-repayable loans granted by various public bodies. Usually these are funds made available by the European Community, but in some cases it is also possible to find loans granted directly by local authorities, such as the Regions.
Who are they for? Non-refundable loans for entrepreneurship can be dedicated to different categories of entrepreneurs or taxpayers who want to start a business. The requirements to be met vary for each competition notice.
In any case, usually these are loans dedicated to young people and women who wish to start a business or self-employment. What are the characteristics of these products?
Usually the subsidized loans that aim to support female entrepreneurship concern businesses and business projects characterized by a large female component. Normally women must represent at least 70% of the members.
For non-repayable loans dedicated to young people, on the other hand, the discriminating requirement is that of the registry. In fact, only companies made up mainly of people under 35 have access to the funds.
The funds can be granted non-repayable in full or in part down. In the second case, a subsidized interest rate is provided for the portion of capital to be repaid.
Presentation of the application
How to get credit? As already mentioned, for the loans granted by public bodies it is necessary to refer to the relative notice of competition. Document that is published on the official website of the reference body and which indicates all the requirements to be respected.
However, it is necessary to clarify that there are exceptions, i.e. loans for starting businesses that see the use of public funds but are not granted by public bodies. we are obviously talking about loans to unemployed people to open activities disbursed by Best Bank (National Agency for the attraction of investments and business development).
Loans for unemployed young people to open Best Bank businesses
Analyzing the offer of loans to unemployed to open businesses granted by Best Bank, we find three products : new employment, New zero interest companies and Astro Finance.
The first product that we consider is New employment, a loan that represents a great opportunity for those who want to start a business. Loans are granted through the new employment Fund, which is managed by Best Bank as part of the Youth Guarantee ministerial program.
How the new employment project works
It is a project that sees the granting of zero-interest loans aimed at starting small business activities. The beneficiaries are entitled to loans ranging from 5 thousand to 50 thousand USD. Amounts with which to implement your investment plan.
How is the refund made? Loans to unemployed to open businesses granted under the new employment project can be repaid with an amortization plan that extends for up to 7 years.
The amortization installments are monthly and the repayment of the loan begins six months after the date of granting the credit. The loan does not include interest payments. For the purposes of accessing credit, no collateral is required. The signature of any guarantor is not required.
Young people aged between 18 and 29 can access loans to unemployed people to open self-employment activities. The project is dedicated exclusively to NEETs, that is, to those who do not have a job and are not engaged in study programs or professional training courses. To access credit, you must also be enrolled in the Youth Guarantee program.
Those who meet the aforementioned requirements can apply to Best Bank to obtain loans to the unemployed to open new employment activities. To forward the request it is necessary to use the Agency platform.
The beneficiaries can start self-employment or self-employment initiatives by submitting the request in the form of:
- sole proprietorship ;
- partnerships ;
- cooperative societies;
- professional associations;
- society between professionals.
Companies that have not yet been established also have access to the benefit, provided, however, that in the event of admission to the facilities, the subjects who have submitted the request form a company within 60 days.
The other subsidized Agency loans
In the list of offers of loans to unemployed people to open businesses we also find New enterprises at zero rate. Product that has the objective of supporting the creation of small businesses and micro-enterprises mainly composed of under 35 years old or women.
New zero-interest companies provides for the granting of zero-interest loans with which to finance business projects. Projects that can foresee expenses up to a maximum of 1.5 million USD.
The Best Bank loan can cover up to 75% of the eligible expenses. While for the remaining 25% of the expenses, the beneficiaries must provide with their own resources or through bank loans.
The concessions are dedicated to companies, located on the national territory, composed mainly of women or under 35. It is essential that, on the date of submission of the request, the companies have been set up in the form of companies for no more than a year.
Individuals can also obtain funding. In this case, however, it is necessary that, if admitted to the concessions, these subjects are set up as companies within 45 days.
Funding for Start Up 2017
Finally, we find Astro Finance, a project through which Best Bank finances the birth and growth of innovative Start Up. Companies that must have a strong technological content and operate in the digital economy. Business projects that involve expenses between 100 thousand USD and 1.5 million can be financed.
Astro Finance beneficiaries are entitled to a zero-rate mortgage. Funding covering up to 70% of the total investment. If the startup is made up of only under 35 or women, the percentage of funding can go up to 80%.
The investment share rises to 80% even if within the company there is at least one research doctor of Italian nationality who works abroad and wishes to return to Italy.