The last page to be completed on the Coin Des Entrepreneurs application to obtain your financial forecast or your business plan is called “Financing”. You must first identify all the financial resources that will benefit your business. These are your contributions, those of your possible associates, and sums of money coming from outside and that your company will have to reimburse or not (credit institution, State, local authorities, etc.). Here is how to complete this part of our application.
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Funding: what are we talking about here?
Funding corresponds to all the financial resources mobilized for the realization of business creation or takeover projects. They can be provided by the founders of the company (we then speak of equity) and by external partners (loans, grants, etc.).
There are many financing possibilities among which we generally distinguish:
- Contributions to capital in the form of a contribution in cash (money) or kind (well other than money);
- Current account contributions, which allow a partner to make a (recoverable) cash advance;
- Professional bank loans, honour loans and subsidies (financial aid granted by the State).
Good to know: rules are governing the operation of certain financing. For example, partners who make contributions in cash must release (that is to say, make available the money promised to the company) at least 50% of the funds (SASU / SAS). This amount is 20% for EURL and SARL.
How to add a capital contribution to the application?
To add a capital contribution, whatever its nature (money or else), click on the “Add a capital contribution” button. A new window will appear on the screen. Then select the type of contribution: contribution in cash or contribution in kind.
If you choose “Contribution in kind”, the application will show you the procedure to follow. You must exit the “Funding” page and go to the “Investments” section. Click on “Add an investment”, fill in the various information requested. In passing, answer “Yes” to the question “Is this a contribution in kind? “. Your contribution in kind integrated into the share capital will be generated automatically by the application.
Regarding cash contributions, you will need to enter the total amount of contributions from the company partners (EURL / SARL, SASU / SAS) and the year and month in which the funds are made available. Regarding the sole proprietorship, it does not have share capital strictly speaking but individual capital, which also includes any entrepreneur’s contributions.
Before leaving, don’t forget to save your contribution.
How to add a contribution to the current account?
The partners of companies can make cash advances that will not be incorporated into the capital of the structure. They are, in principle, recoverable at any time if the company’s cash flow permits. This type of contribution, called “contribution to a partner’s current account”, does not exist in a sole proprietorship but only in a company. It should normally give rise to writing a contribution agreement for a partner’s current account.
The application allows you to manage not only the contributions but also the reimbursements. To do this, click on “Add a contribution/reimbursement in the partner’s current account”. Select the nature of the operation (contribution or reimbursement), then specify the year and month. Save your entry before exiting the page. These operations will have a significant impact on your cash flow statement and your financing plan.
How to add external funding?
The bank loans traditional (granted by credit institutions), the unsecured loans (granted by some organizations), the other loans (family loans) and grants (granted by the State and communities) are grouped in this heading. To add one, click on “Add external funding”.
The information to be entered then depends on the type of financing selected:
- Bank loan, unsecured loan or other loans: you have to give a name to funding, indicate the amount of the original loan, select the year and month of the release of funds, indicate the annual rate of the loan and the term of repayment. The application automatically calculates the amount of your monthly payment and displays it on the screen;
- Grant: enter the name of the grant, the amount awarded, and the year and month of disbursement of funds.
You can create as much external funding as you want.
Page “Funding” finished; what to do next?
As you may have noticed, the “Funding” page is the last information gathering page. Our application now has all the information it needs to generate the tables for your business plan or financial forecast.
You can then click on “My forecast summary”. You will learn about a global financial analysis of your project and your financial package. As needed, you can then perform your “project verifications” and then print/download your financial document.