Financing the early years of an SME

Cash flow is financed primarily through the bank, and the difficulty for a young SME is obtaining it. Bpifrance's Cash Flow Strengthening Guarantee covers loans that strengthen the company's financial structure, whether new or for consolidation: the coverage rate is 50%, raised to 70% if the financing significantly increases bank facilities, over a period of 2 to 7 years (15 years with a property-backed security).

For a cash flow need linked to growth, Bpifrance's Prêt Boost, presented in the 'Growth' stage, is an unrestricted-use loan available to small businesses and SMEs.

Some intermunicipal authorities finance the financial consolidation of companies in their area through repayable advances. The Métropole Européenne de Lille, for example, offers a financial consolidation grant for companies with more than 25 employees and at least three financial years of existence, alongside bank or shareholder co-financing; the Communauté d'agglomération du Boulonnais offers an advance capped at €100,000. These schemes are local and their terms vary considerably.

Several honour loan networks (Initiative France, Réseau Entreprendre, France Active) also support a first development phase a few years after start-up: the principle remains the same, a personal loan to the business owner, interest-free and without collateral, which strengthens equity and facilitates a bank loan. The catalogue lists some for this stage at local level.