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, the people around you will have confidence in you, and not just in the profitability of 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 answering your questions, our SADC experts can help you make a real analysis of your situation. What's more, an analysis of your long-term needs and the determination of an appropriate financial strategy for your business 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 your project and bring it to fruition.
YOU WISH...
- Acquiring, merging or taking over a company
- Improve your working capital / Growth
- Starting a business
- Acquiring equipment
- Export your products or services
- Buying commercial/industrial property
- Take 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