PREFERENTIAL FINANCING FOR ENTREPRENEURS IN EU PROGRAMMES
From the article EU funds for the development of a company you have learnt, inter alia, about the possible support for your business in the so-called Operational Programmes. You should know that this is not the only source of attractive financing for the development of businesses under the EU funds. In December 2015 the offer of first intermediaries (in particular banks) of new EU programmes for 2014-2020, such as COSME, Horizon 2020, EaSI (for more information, click here) was launched. The offer will be gradually extended. In large part the offer is aimed at micro, small and medium-sized entrepreneurs.
In some cases, the funding is still available within programmes launched before 2014 (e.g.Competitiveness and innovation framework programme CIP, the European Progress Microfinance Facility).
Offer of preferential financing is available to a wide group of entrepreneurs, including start-ups, self-employed and micro-entrepreneurs, small and medium enterprises from all sectors and also large entities.
Types of funding
The financial instruments of EU programmes offer you, inter alia,
- investment credits
- working capital loans,
- credit guarantees.
In addition to debt instruments (loan, leasing, guarantee), within the framework of financial instruments of EU programmes, equity financing will also be available (e.g. by venture capital funds).
What can be funded?
Preferential financing can be used for a wide range of actions connected with the activities of your company, including inter alia, its establishment and development, research and innovation activities, the purchase of transport means. You can also finance a contract.
Why is it worth?
First of all, you need to be aware that support under these programmes is a help which you will have to pay back. Support of EU funding is much more favourable than other forms of raising money to operate. Why? Unlike for example ordinary bank loans, this involves lower collateral or a lower own contribution. Using them, you can avoid complex applications, tight deadlines and queues. You do not have to have, as in the case of other financing methods, a long credit history in order to apply for support.
Where and how can one obtain support?
You can obtain financing under the EU programmes of so-called National Financial Intermediaries. Information on funding and links to offers of intermediaries can be found on the website of the National Contact Point for Financial Instruments of the European Union Programmes.