Starting an independent economic activity, whatever its form may be, is difficult without financial resources. After having assessed one’s own savings and having evaluated the chances of being helped by friends and family, the time comes to contact the obvious intermediary for financing: the bank. That said, although banks offer credit to many companies, it is important to be aware that they are much more reluctant to offer financing if the risks seem high.
And it is important to be aware that as an entrepreneur, having limited funds and guarantees will often make it difficult to convince the bank. This is the reason why the public authorities provide entrepreneurs with accessible, even advantageous, solutions.
On the one hand, sticking with bank credit, the Brussels Guarantee Fund can cover up to a maximum of 80% of the amount borrowed from the bank, thus reducing the risk taken by the latter. Note that the aim here is to make up for a real lack of guarantees. The cost of financing is hardly reduced since there is a contribution to pay to the guarantee fund, but this solution often allows a financing file to be unfrozen.
In addition to the guarantee fund, there is a series of subordinate loans granted by Brupart or through Brustart and Brusoc, subsidiaries of the group finance.brussels (Brussels Regional Investment Agency). Remember that when we talk about loans, this means that the amounts obtained must be, by definition, repaid at more favourable conditions than to the bank. This type of credit is clearly distinguished from subsidies which do not need to be repaid, in principle.
Finally, there are some exceptional situations in which we can envisage real participation from the region in the company’s risk. This type of operation is only possible in the context of the SRIB (Brussels Regional Investment Agency) and, in terms of a company creation, through Brustart, a subsidiary of the SRIB, dedicated to financing young innovative companies.
Of course, it would make little sense to only be interested in public financing. Therefore, we recommend browsing the pages dedicated to financing.