Many engineers today make the choice to work independently. In this situation, an engineer sometimes needs to use credit to launch or boost his business. What are the most suitable solutions? Our advices.
Types of funding available
Depending on the chosen status, self-employed or professional, the amount and need for financing, several types of solutions are available to an engineer:
– to start his activity as a self-entrepreneur: below € 10,000, it is recommended to use a micro-credit or a personal loan, type ready for consumption;
– For sums over € 10,000: the recourse to conventional professional credit is rather recommended.
In the liberal profession, an engineer can also finance a purchase of equipment with the leasing: without contribution, it allows to become owner of a rented equipment.
The engineering credit, what conditions?
Obtaining a loan requires, in general, to justify the legal existence of the company, to specify the nature of the need and to present the latest balance sheets or a business plan. In the case of a creation of activity, a personal contribution can be asked: it can be up to 30% of the amount of the project.
A surety or guarantor may also be required. If the engineer goes through a micro-credit, the dedicated funding agency, the ADIE (Association for the right to economic initiative), and asks to present a “witness”, guarantor up to 50%.
Who to apply for an engineering credit?
Today, banks and credit agencies offer many solutions for independent engineers: a first solution is to study the offers and to compete to obtain the most advantageous credit. For micro-credits, ADIE offers specific solutions to self-entrepreneurs.
Otherwise, another solution exists: go through crowdfunding. On the Internet, credit platforms based on a community of investors meet the financing needs of engineers. The advantage: simplified procedures and fairer rates.