Personal contributions to obtain a professional bank loan
The start of a project to create or take over a business is sometimes conditional on obtaining bank financing . When significant investments are necessary, or when an existing business must be bought out, the personal contributions of the entrepreneur are sometimes insufficient to carry out the operation.
Professional bank financing is one of the solutions available to the entrepreneur to supplement his personal contributions and provide himself with the means to launch his project. To obtain bank financing, however, the bank will require that the entrepreneur has sufficient personal contributions .
Importance of personal contributions to obtain a professional bank loan
To benefit from a professional bank loan , it is essential to obtain the agreement of the bank . For this, a file must be established. Then, it will be examined and the bank will decide to grant or refuse your professional financing. The bank’s decision on the granting of professional financing is based on several criteria . Among these, the amount of personal contributions of the entrepreneur is the most important.
An entrepreneur who has no personal contributions, or who has a derisory percentage of personal contributions, will not obtain a professional bank loan. No bank will agree to lend him money for his project, the file will not even be studied.
If you need a professional bank loan, it is therefore essential to have personal contributions in sufficient proportions in relation to the overall financing of the project.
When your contributions are not sufficient, you can turn to business creation assistance schemes. Some of these schemes can allow you to increase the proportion of your personal contributions. For information on this subject, you can consult this file: financial aid for the business creator .
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Personal contributions necessary to obtain a professional bank loan
Here are the percentages of personal contributions recommended to obtain a professional bank loan:Proposed purchase or construction of commercial premises : at least 10% of the total financing requirement (including notary fees and other costs).
These percentages, given as an indication, may fluctuate slightly depending on other criteria. Among these, we find:
The financial and asset situation of the entrepreneur plays an important role in the bank’s decision. A good client can obtain bank financing even if his personal contributions are below the thresholds mentioned above.
The characteristics of the business creation or takeover project. The nature of the activity, the skills of the entrepreneur and the characteristics of the project are important criteria. They are taken into account to study the level of risk taken on the financing.
