There are many young people who have an interesting business idea and want to put it into practice. Opening a business makes it possible to realize a dream, but it also involves numerous costs, often important, and for this reason, it may be necessary to apply for a loan. To have access to a traditional loan you must have certain requirements and the necessary documents. Young people under 35 and women who want to launch a business project on the market have the opportunity to access both public and private subsidized financing. The small business loans can be non-repayable, zero-interest, for startups, and sometimes also include support and real entrepreneurial training.
Let’s find out together what the loans for a business are and how to get them:
- Loans for a commercial activity
- Loan of honor
- Bank financing
- State funding
- The features of a winning business plan
In order to apply for small business loans, it is necessary to:
- be a young person under the age of 35;
- have a project for the start-up of a company sas, snc, Spa or cooperative, which guarantees, in the future, the possibility of hiring;
- be a student or unemployed person.
Loans for a commercial activity
Numerous banks and institutions offer various small business loans under 35 and women. The goal is to encourage the creation of activities, startups, and small companies that can improve the economic situation of the areas in which they decide to intervene. The capital that is usually financed is money that helps to start up the company. The banks, given the scarce guarantees that the borrowers give, finance small amounts, but at the same time useful for starting the company.
The proposals on the market are different: national and international financing, honor loans, zero-interest loans, and subsidized loans. Depending on the age and capital you need to start the business, you can choose the most interesting call for your needs. Each call provides for different requirements both in terms of participation, both in terms of business projects and on the basis of the capital that can be financed (for example if non-repayable or zero-interest). Let’s see together the most interesting types of financing to start a business.
Loan of honor
The honor loan is dedicated to young unemployed graduates who plan to become entrepreneurs. The type of financing small business loans that are disbursed with this type of loan is a non-repayable part, while the remaining part is a real loan that will have to be repaid in installments, but with subsidized interest rates.
Bank financing/ Zero Interest Loan
There are numerous loans that banks have designed for customers who want to open a business. For example, the zero-interest loans that are easy to obtain, are dedicated to young people under 35 and allow you to have the initial capital to start the business.
Regional funds for young startups or small business loans are numerous. These loans are a form of soft credit dedicated to encouraging the creation of small businesses in places that need to be revived economically.
The donor institutions that participate in the initiative to support young entrepreneurship, however, also offer personalized financial plans. If you are under the age of 35 and have a business project in your pocket, it is worth enquiring with banks and financial institutions to find out about specific offers.
To obtain small business loans for a start-up, being under 35 years old and wishing to start business projects, you must present within the loan application: your documents (identity card and tax code); the business project, as small detailed as possible; its own guarantees (credit on the current account, real estate or land owned); a guarantor, in these situations, is always an excellent reference.
In principle, it is useful to know that the business plan clearly must convince the lender in the shortest possible time, and therefore, useful to avoid writing long detailed but unfortunately boring business plans. Get small business loans now!