Proximity capital / love money
What is this type of financing?
Proximity capital is a financial alternative to traditional financing offered by financial institutions. Essentially, it consists of a donation or loan (with or without interest) made to the individual or company by someone close to them (friends, family, etc.). This type of financing is aimed at entrepreneurs who have difficulty accumulating the sums required for a downpayment.
What are the special features of this financing?
- Since it's a down payment, it can be extended/subrogated, which means it can't be repaid at any time.
- This financial involvement is formal: relatives can become lenders to the company.
- Generally speaking, the purpose of this investment is considered to be more emotional than lucrative. In other words, relatives invest to help the buyer start a business or buy an existing business, not to make money.
- Money is a delicate subject to discuss with a loved one, so it's best to seek professional advice to validate the different options.
What are the advantages of this financing?
- Most of the time, those around you will time trust in you, and won't simply be looking for a return on their investment.
- Terms, warranties and conditions are determined by proximity and/or the requirements of traditional lenders, which sometimes allows for greater latitude and flexibility.
- Decision-making for this type of financing will be faster than for any other investor.
In addition to helping you answer your questions, our experts at SADC can help you really analyze your situation. What's more, an analysis of your long-term needs and the determination of an appropriate strategy The right financial solutions for your company could be developed at the same time.
See the list of different needs on the right. This financial product specifically meets the following needs:
Don't hesitate to apply to SADC for financing. We'll help you think through and implement your project. project.
YOU WISH...
- Acquiring, merging or taking over a company
- Improve your working capital / Growth
- Starting a business
- Developing a residential / commercial project
- Acquiring equipment
- Export your products or services
- Financing your tax credits
- Buying commercial/industrial property
- Turn around the financial situation
- Taking equity out of your business
- Robotize / Automate / Improve IT
- Financing a startup
- Improve your company's environmental performance
- Carrying out a group project
- Strategic planning for your company's development
