Skip to content

Startup Loans | What they are and how they work

Startup loans: news and concessions

Startup loans: news and concessions

The term startup refers to the initial phase of the activities of a new company, just built or listed on the stock exchange. It is precisely at this stage that you need to have some money to invest.

Those who want to develop their business project, but do not have the funds, can resort to funding for startups.

Attention: before searching for the most suitable bank or call for tenders to obtain the capital necessary to bear all the expenses, it is necessary to have all the correct information on what it means to start a startup.

It is essential to have a clear understanding of the stages for creating a feasible, sustainable and successful business model.

The types of startup loans

The types of startup loans

Newborn companies can choose different ways to access credit lines:

  • public tenders proposed by Municipalities, Regions, State Administrations or by the European Union. Requests to access calls are usually made on the institutions’ web portals by filling in the application and attaching the required documents. The most sought-after form is that of non-repayable loans, which are disbursed for tangible and intangible investments and do not provide for repayment;
  • make use of banks, which more and more often, in addition to traditional loans for businesses, make particular forms of credit available to newly established companies that meet certain requirements established by law. To access start-up loans it is necessary to present solid personal guarantees or on movable and immovable property. In this way, the bank providing the loan can be secured;
  • private financing, using the various crowdfunding and social lending platforms. In both cases, registration is free and it is not necessary to pay money in advance since the managers retain a percentage of the sums collected (when expected).

The new types of startup loans

In recent years, new types of startup loans have developed, namely:

  • Business Angel, an informal investor, a wealthy person who invests funds in a new business, in exchange for bonds or equity. Therefore, those who rely on this subject must grant a portion of the startup shares;
  • Venture Capital, concerns the contribution of risk capital by an investor to finance the birth of the company in certain sectors with significant development potential.

Start-up loans allow you to collect a fair amount of capital to complement your creativity, spirit of initiative and entrepreneurship.

In addition, some specific categories, such as youth and women’s enterprises, can enjoy additional concessions that aim to encourage the realization of productive investments.