It is not always easy for a self-entrepreneur to apply for credit, yet many financing schemes exist.
What is a self-enterprise?
Since 2009, the new auto-entrepreneur scheme has allowed anyone of age and ability, including employees, the unemployed, and pensioners, to create their own business. To be considered as such, a self-business must generate a turnover of less than € 80,300 if it carries on a business of buying, reselling, manufacturing or providing accommodation, and € 32,100 if it is a service provider.
This status of auto-entrepreneur is advantageous because simple to implement: A single form to complete on “The autoentrepreneur.com” is sufficient to open your file. Moreover, the self-enterprises are not subject to the business tax during the first 3 years of their activity, nor to VAT.
This greatly eases the accounting of the company in question. Conversely, it will be necessary to note among their drawbacks the social system of self-employed to which they are subjected (protecting much less than the wage system), the lack of cover in the event of an accident at work, and the obligation to change status if the turnover exceeds the limit indicated.
At the same time, it seems important to note that a self-employed unemployed person will be able to continue receiving his benefits as long as his self-entrepreneur activity earns him less than 70% of his reference income. The RSA is compatible with the activity of auto-entrepreneur under certain conditions as well.
This new system has proved itself very quickly since, at the end of 2009, there were already more than 580200 new businesses, 50% of which were self-employed. This represents a 75% increase in start-up compared to 2008.
Which loan to choose?
It is not always easy for a self-entrepreneur to apply for credit, not because of the reluctance of banks, but mainly because of the lack of information on the financing possibilities that exist to date.
In fact, it will be possible to obtain the following financial aid:
- A crowdfunding / crowdfunding
- A professional micro credit
- Financial guarantees from financial institutions specializing in business start-up assistance
- Financial help from organizations like Pôle Emploi
- A consumer credit / personal loan
- A loan of honor
- A pawnshop (as a last resort)
How to get my auto-entrepreneur loan?
In obtaining a self-entrepreneur loan, as in obtaining a private loan, it is the bank (or the credit agency) that will judge the solvency of the file. To do so, you will need to present your complete Business Plan.
The Business Plan consists of a global view of the project attesting to your ability to set it up. Thus, it will include a complete description of the activity that you wish to exercise (product or service), the market and the competition. It is strongly recommended to carry out a SWOT analysis, reporting the strengths and weaknesses of the project as well as market opportunities and threats. It is also a way of reporting on your professional experience and financial situation. All this will allow the bank to judge the financial feasibility of the project based on your income, your financial contributions, and the cost of the action over the next 5 years.
It will be recommended that you do not present your self-business as a simple salary supplement or as a temporary solution. It must be a long-term project in its own right.
In any case, we will note that since the economic crisis that has strongly impacted jobs in France, many people have been forced to start their own business. This opened a new financial market aimed at helping start-ups and start-ups. Thus, it is now much easier to obtain a credit self-entrepreneur than before.