How to finance your business idea, from loan to crowdfunding

From non-repayable loans to micro-credit, from business angels to crowdfunding: discover all the possibilities you have to finance your business idea

It happens to many entrepreneurs: the idea, the “flash of genius”, the famous light bulb that lights up and stimulates new processes to be applied to the company. But once the entrepreneur has had the idea, how can he finance it ? There are many channels to obtain money and liquidity : from the traditional loan of friends and relatives, we move to banking, from non- repayable loans to subsidized loans, we can resort to micro-credit , to the business angel, venture capital or crowdfunding.

Let’s see in detail what are the possibilities that entrepreneurs have to finance their idea.

Loans from relatives and friends

The easiest thing to fund your business idea is to ask relatives and friends to invest in the project . In this case it is necessary to take a serious approach, proving that this is not a game, perhaps even taking a written commitment. In addition to the classic donation of money, relatives and friends can intervene in the business by becoming shareholders of capital.

Banks and subsidized finance

You can get credit from a bank , upon presentation of a solid project and adequate guarantees (assets, real estate, savings). You can have lower interests and reduce the risk of insolvency, in the event of bankruptcy, by accessing bank loans through guarantee funds created by the Ministry for Economic Development. Obviously the obligation to return a small part of overdraft remains and the rest is covered by the fund. On the other hand, the loan must be repaid in accordance with the terms of the contract.

Non-refundable contributions

Another possibility that entrepreneurs have to finance their idea is to access non-repayable contributions . You can find announcements on Government websites (example: Council Presidency, Department for Equal Opportunities) and associated companies ( Invitalia ), Ministries (For economic development, University, Transport, Cultural Heritage, Tourism), Regions, Chambers of Trade and Trade Associations, European Commission.


The micro-credit is a financial instrument in favor of inclusion of subjects defined as non-bankable , or that do not have access to credit in the traditional way. The loans disbursed can reach 25/35 thousand euros (depending on the entity to which it is addressed), even without guarantees. To gain access to microcredit, often a credible project and a business plan areenough to create jobs, structure a company or develop an existing one.

Business Angel and Venture Capital

The business angel is an investor who bets on the business idea and profits from it . Having a shareholder in the company, which has a financial investor approach, imposes steps set for development over 5 years (revenues, margins, any listing). It contributes to creating a system around the company, creates interactions and fosters synergies with other companies with a view to development and economic growth.


Very popular at the moment, crowdfunding – collective funding – offers the best results for companies that offer something creative and artistic. The idea is launched on special portals, such as Kickstarter , and people are invited to finance the project with small shares.

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