Professional bank loan: the percentage of personal contributions

As we mentioned in our previous file dealing with the personal contributions of the business creator, a minimum personal investment is necessary to obtain a professional bank loan .

In this file, we tell you what are the percentages of personal contributions necessary to obtain professional bank financing, and give you some advice to increase, if necessary, your percentage of personal contributions:

Professional bank loan: do you need personal contributions?

The need to have sufficient personal contributions concerns business creation or takeover projects. It is therefore financing operations to undertake a new activity.

On the other hand, the bank loans contracted within the framework of a development of activity do not require any personal contribution, its granting will be studied compared to the financial statements of the company. The company’s self-financing capacity, its profitability and its financial situation are the main criteria taken into account.

When a personal contribution is required to finance a project, the percentage of personal contribution is the first criterion taken into account by the banks . It is calculated as follows: (total amount of personal contributions) / (total amount of financing requirement).

The overall amount of your financing requirement corresponds to the total amount of the investments to be made and the amount of the working capital requirement.

FINANCING YOUR PROJECT – OUR TOOLS TO SUPPORT YOU

The percentage of personal contributions to obtain a professional bank loan
Here are the levels of personal contributions that it is advisable to provide to be almost certain to obtain a professional bank loan as part of your project:Your percentage of personal contributions is satisfactory
When your percentage of personal contributions is satisfactory , you have a good chance of obtaining positive responses from the banks that you are applying for a professional bank loan.

If your project is serious and well put together, you will have your financing and can start your new activity.

Your down payment percentage is slightly lower
If your percentage of personal contributions is slightly lower than these thresholds, you still have a good chance of obtaining your bank financing if your other criteria are positive. Among these criteria, we find in particular: the quality of your project, its level of risk, your financial situation and personal assets.

Your personal contributions are insufficient
Finally, if you have no or very little personal contribution , you will not be able to obtain your professional bank loan. You will therefore have to abandon your project or find other solutions.

How to increase your percentage of personal contributions?

When your percentage of personal contributions is clearly insufficient compared to the values ​​indicated below, you have almost no chance of obtaining bank financing.

To hope for financing, you must therefore increase your percentage of personal contributions. Several solutions are possible:

modify your project, as far as possible, to reduce the overall amount of funding required,
find new sources of personal contributions by obtaining financial aid ( ARCE , loan of honor , solidarity loan of honor , financial subsidy, etc.),
integrate a new investor into your business creation or takeover project who can provide the necessary additional contributions.