Funding with a broker
For a long time, broker was a job that was mostly well known in the English speaking world. Luckily, however, this activity has started spreading in France too!
Summary
- Why should I go through a broker?
- Are brokers trustworthy?
Why should I go through a broker?
Trying to find funding for your company can sometimes feel impossible, especially in France where banks tend to be very reluctant to grant loans. As such, in order to maximize your chances of finding a way to fund your company, it might be worth your time to consider contacting a broker.
What do they do? Basically, they will analyze how feasible your project is, help you find convincing arguments and help you when confronting banks. Simply put, their job is to get you the best financial offer as possible.
For them to be able to analyze your project and your needs, they’ll need to have access to certain documents and pieces of information. For example, they might want:
- Your identity, your family situation, etc.
- Your bank accounts. If possible, make sure there are no incidents in your records, or you’re going to have a very tough time!
- The loans you personally have contracted, such as mortgages, consumer credits, etc.
- Your professional experience. Try to put the emphasis on experience in the sector of the activity of your company, if you have any.
Then, they’ll analyze your project as precisely as possible:
- They can check the location of your company, to make sure it’s well-suited to your activity.
- If you’re taking back a company, the balance sheet and the management of the previous years are worth analyzing. That way, it would be possible to make a funding plan over the next 3 years.
- They may also check the planned expenses, such as rent, water, electricity, insurance, etc.
Finally, they’ll use their findings to put together a funding plan for you. This plan includes:
- The acquisition amount
- Registration fees
- Deed-writing fees
- The Working Capital Requirement (WCR)
- Your mandatory contribution. It must represent at least 30% of the requirements of your project
The broker has to have all of this information. Thanks to it, he’ll be able to present your project to the banker and be an effective negotiator.
Also, remember that you can make use of a broker no matter what your project is. It doesn’t matter if it’s to create a company, to buy one, to buy an office, to buy shares, … If you need funding, a broker might be the solution!
Are brokers trustworthy?
There are quite a few regulations and stipulations when it comes to the job of broker. Indeed, they have to meet certain criteria when it comes to professional education, civil liability, and they have to be registered in the ORIAS register.
As such, what you need to remember is that every broker has to be very qualified for their job. Not only do they have to know their field and the market like the back of their hand, but they must also have a very good commercial flair and incredible know-how.
