The financing mix: how to raise money outside the bank?

There are many alternative financing options available today, but for many entrepreneurs, this is still uncharted territory. In this blog, SBB expert Kirsten Buermans gives you advice on the ideal financing mix.

How do you create the right financing mix?

According to Kirsten, as an entrepreneur, you must first have your own resources. This equity can be supplemented with a traditional bank loan, subsidies, or an alternative financing form.

Your immediate environment can also help here. Friends, family members, or sympathizers can financially support you through a Win-win loan. Additionally, ParticipatieMaatschappij Vlaanderen (PMV) offers various solutions, such as Cofinancing, a loan up to €350,000 in combination with another (bank) financing.

What factors play a role in choosing your financing source?

Kirsten explains that choosing a financing form depends on several factors:

1. How quickly and how much money do you need exactly? Ensure a clear insight into the amount of money you want to raise, for what purpose, and within what timeframe.
2. What financial risk are you willing to take? Borrowing money also means that you have to repay it within an agreed term. Are you sufficiently prepared for unforeseen circumstances?
3. How independent do you want to remain? Some investors only want to contribute financially, while others want input as well. The advantage of investors is that they often offer added value through their know-how, management skills, and network.

What support does SBB offer for entrepreneurs seeking capital?

Kirsten notes that there is still too little knowledge about alternative financing forms among SMEs. SBB helps by making the different options visible and advising on the financing mix. Additionally, they provide practical support by helping with the preparation of credit applications, developing a financial plan, and reviewing credit contracts. SBB is also an official introducer for the Start loan and Cofinancing by PMV.

Tip! Everything starts with a good story

When seeking capital, you need to clearly and accurately indicate what you are asking from your investors and what they can expect. A well-developed business plan and financial plan are essential. This includes the exact investment amount, a repayment plan, and the expected return.

Want to know more? Contact an SBB advisor via corporatefinance@sbb.be.

Kirsten Buermans
Product Manager Corporate Finance

SBB Accountants & Advisors
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