Unfortunately, not everyone is eligible for a loan from the bank. The bank finds the risk too high to provide a loan and this is mainly due to the after-shock of the crisis. However, it is still possible to borrow money, as you can still qualify for a loan from the government. The government can help you in the form of buying shares, providing a guarantee or through providing a loan.
The Seed & Early Stage investment
If you want to qualify for risk capital, you can contact the Participation Company Flanders (PMV). The Participation Company Flanders gives innovative starters the opportunity to get through the growth phase with their company. The entrepreneurs are supported by means of risk capital, which is also called the ‘Seed & Early Stage investment’. With this investment, the government becomes a shareholder in the company. It is also possible for the entrepreneur to take out a convertible loan with the government. This is a money loan that may later be converted into shares.
This Seed & Early Stage loan can run for 7 to 10 years. Not everyone in Belgium is eligible for this loan. The loan is intended for entrepreneurs who add something to Flanders. The intention is for the entrepreneur to come up with a good business plan. The plan must be thought out and substantiated. If the government sees something in your plan, you can qualify for this loan.
The Business Angels loan
The Business Angel loan has been created for entrepreneurs who are not eligible for a loan from the bank. The BA loan can be obtained from the participation fund. With the BA loan, the entrepreneur is supported by a so-called ‘Business Angel’. This Business Angel supports the entrepreneur financially, but also helps them with doing business and giving tips. The condition for this loan is that the Business Angel must be affiliated with the Business Angel Network. Other conditions for this loan are that the entrepreneur may not have more than 50 employees, and the entrepreneur must realize an annual turnover of 10 million. Also, the amount borrowed from the BA may not exceed your own self-invested amount. The amount that can be borrowed with the BA loan is between € 70,000 and € 125,000.
If you want to be eligible for a BA loan you will have to present your project to the Business Angels Network. Different investors will look at your project, and you may find a Business Angel who can help you set up your business.
The Flemish Credit Broker
If you are not eligible for a loan, you can contact the Flemish Credit Mediator. This can help you in negotiating with financial institutions, so that a solution can be found. The Flemish Credit Broker is looking for alternative ways to help you with the money, so that you can start your business as usual!
Start your loan application here!