{"id":27856,"date":"2023-08-01T18:03:00","date_gmt":"2023-08-01T18:03:00","guid":{"rendered":"https:\/\/avocat-montreal.ca\/?p=27856"},"modified":"2023-11-17T17:07:54","modified_gmt":"2023-11-17T17:07:54","slug":"financing-a-start-up-company","status":"publish","type":"post","link":"https:\/\/avocat-montreal.ca\/en\/blog\/financing-a-start-up-company\/","title":{"rendered":"Financing a start-up company"},"content":{"rendered":"\r\n<p class=\"wp-block-paragraph\">The start-up phase is the most difficult part of any business creation project. This fundamental stage requires start-up capital. How can you find the funds you need to launch your business? Here&#8217;s a summary of the best solutions for <strong>financing a business start-up<\/strong>.<\/p>\r\n\r\n\r\n\r\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_start-up_financing\"><\/span>What is start-up financing?<span class=\"ez-toc-section-end\"><\/span><\/h2><div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/avocat-montreal.ca\/en\/blog\/financing-a-start-up-company\/#What_is_start-up_financing\" >What is start-up financing?<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/avocat-montreal.ca\/en\/blog\/financing-a-start-up-company\/#Understanding_start-up_financing\" >Understanding start-up financing<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/avocat-montreal.ca\/en\/blog\/financing-a-start-up-company\/#What_laws_govern_start-up_financing\" >What laws govern start-up financing?<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/avocat-montreal.ca\/en\/blog\/financing-a-start-up-company\/#What_are_the_different_sources_of_start-up_financing\" >What are the different sources of start-up financing?<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/avocat-montreal.ca\/en\/blog\/financing-a-start-up-company\/#Socio-financing\" >Socio-financing<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/avocat-montreal.ca\/en\/blog\/financing-a-start-up-company\/#Angel_investors\" >Angel investors<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/avocat-montreal.ca\/en\/blog\/financing-a-start-up-company\/#Business_incubators\" >Business incubators<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/avocat-montreal.ca\/en\/blog\/financing-a-start-up-company\/#Government_subsidies\" >Government subsidies<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/avocat-montreal.ca\/en\/blog\/financing-a-start-up-company\/#Financial_assistance_from_private_banks\" >Financial assistance from private banks<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/avocat-montreal.ca\/en\/blog\/financing-a-start-up-company\/#Love_money\" >Love money<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/avocat-montreal.ca\/en\/blog\/financing-a-start-up-company\/#Venture_capital\" >Venture capital<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/avocat-montreal.ca\/en\/blog\/financing-a-start-up-company\/#Best_practices_for_obtaining_financing_for_a_start-up_company\" >Best practices for obtaining financing for a start-up company<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/avocat-montreal.ca\/en\/blog\/financing-a-start-up-company\/#What_you_need_to_do_to_secure_start-up_financing\" >What you need to do to secure start-up financing<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/avocat-montreal.ca\/en\/blog\/financing-a-start-up-company\/#Mistakes_to_avoid_when_applying_for_start-up_financing\" >Mistakes to avoid when applying for start-up financing<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/avocat-montreal.ca\/en\/blog\/financing-a-start-up-company\/#Conclusion\" >Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n\r\n\r\n\r\n\r\n<p class=\"wp-block-paragraph\">Obtaining financing is a sine qua non for starting up a business, but what does it involve?<\/p>\r\n\r\n\r\n\r\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Understanding_start-up_financing\"><\/span>Understanding start-up financing<span class=\"ez-toc-section-end\"><\/span><\/h3>\r\n\r\n\r\n\r\n<p class=\"wp-block-paragraph\">Also known as <strong>initial<\/strong> or <strong>seed<\/strong> <strong>financing<\/strong>, <strong>start-up<\/strong> <strong>financing<\/strong> refers to the financial resources mobilized to create a business and launch your professional activity.<\/p>\r\n\r\n\r\n\r\n<p class=\"wp-block-paragraph\">These financial resources cover the <strong>initial costs<\/strong>, i.e. rental of premises, purchase of equipment, running costs, staff salaries, marketing campaigns, etc. It also contributes to the smooth running of the business until the first profit is achieved.<\/p>\r\n\r\n\r\n\r\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_laws_govern_start-up_financing\"><\/span>What laws govern start-up financing?<span class=\"ez-toc-section-end\"><\/span><\/h3>\r\n\r\n\r\n\r\n<p class=\"wp-block-paragraph\">The Business <strong>Corporations Act<\/strong>, or BCA, governs the creation, modification and regulation of business corporations in <strong>Canada<\/strong>. The federal law dictates share issuance requirements, shareholder protection rules and issuer obligations.<\/p>\r\n\r\n\r\n\r\n<p class=\"wp-block-paragraph\">The Securities <strong>Act<\/strong> sets out requirements for the offer and sale of securities, and investor protection rules.<\/p>\r\n\r\n\r\n\r\n<p class=\"wp-block-paragraph\">The <strong>Canada Cooperatives Act (CCA<\/strong> ) sets out requirements for the creation and management of cooperatives, and the issue and sale of cooperative shares.<\/p>\r\n\r\n\r\n\r\n<p class=\"wp-block-paragraph\">Foreign project sponsors wishing to invest in Canada are subject to the <strong>Investment Canada Act (I<\/strong>CA). It governs the projects of foreign investors in Canadian businesses.<\/p>\r\n\r\n\r\n\r\n<figure class=\"wp-block-image size-full\"><img fetchpriority=\"high\" decoding=\"async\" width=\"1000\" height=\"548\" class=\"wp-image-27452\" src=\"https:\/\/avocat-montreal.ca\/wp-content\/uploads\/2023\/07\/financement-entreprise-1.jpg\" alt=\"L'obtention du financement d'une entreprise au d\u00e9marrage requiert un solide plan d'action.\" srcset=\"https:\/\/avocat-montreal.ca\/wp-content\/uploads\/2023\/07\/financement-entreprise-1.jpg 1000w, https:\/\/avocat-montreal.ca\/wp-content\/uploads\/2023\/07\/financement-entreprise-1-300x164.jpg 300w, https:\/\/avocat-montreal.ca\/wp-content\/uploads\/2023\/07\/financement-entreprise-1-768x421.jpg 768w\" sizes=\"(max-width: 1000px) 100vw, 1000px\" \/><\/figure>\r\n\r\n\r\n\r\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_are_the_different_sources_of_start-up_financing\"><\/span>What are the different sources of start-up financing?<span class=\"ez-toc-section-end\"><\/span><\/h2>\r\n\r\n\r\n\r\n<p class=\"wp-block-paragraph\">Each source of financing has its own characteristics and strengths. Your choice will depend on your needs and the nature of your start-up business.<\/p>\r\n\r\n\r\n\r\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Socio-financing\"><\/span>Socio-financing<span class=\"ez-toc-section-end\"><\/span><\/h3>\r\n\r\n\r\n\r\n<p class=\"wp-block-paragraph\"><strong>Socio-financing<\/strong> is similar to fund-raising. The method boils down to asking a group of individuals for small contributions, in exchange for their participation in the running of the<strong>company<\/strong>.<\/p>\r\n\r\n\r\n\r\n<p class=\"wp-block-paragraph\">The project begins with the launch of a <strong>socio-financing campaign<\/strong>. You persuade a handful of individuals who share your objectives, point of view, vision and belief to contribute to the launch of your company.<\/p>\r\n\r\n\r\n\r\n<p class=\"wp-block-paragraph\">Socio-financing takes many forms:<\/p>\r\n\r\n\r\n\r\n<ul class=\"wp-block-list\">\r\n<li style=\"list-style-type: none;\">\r\n<ul>\r\n<li><strong>equity financing<\/strong>: investors receive shares in the company, and are entitled to a share of revenues or profits in exchange for their financial contribution;<\/li>\r\n<\/ul>\r\n<\/li>\r\n<\/ul>\r\n\r\n\r\n\r\n<ul>\r\n<li style=\"list-style-type: none;\">\r\n<ul>\r\n<li><strong>loan financing<\/strong>: the project owner lends money to investors at a high interest rate;<\/li>\r\n<\/ul>\r\n<\/li>\r\n<\/ul>\r\n\r\n\r\n\r\n<ul>\r\n<li style=\"list-style-type: none;\">\r\n<ul>\r\n<li><strong>socio-financing through donations or rewards<\/strong>: the company asks for donations in return for a fee or the receipt of a product or service.<\/li>\r\n<\/ul>\r\n<\/li>\r\n<\/ul>\r\n\r\n\r\n\r\n<p class=\"wp-block-paragraph\">You can choose from a range of socio-financing search platforms, such as : <a href=\"https:\/\/laruchequebec.com\/\">La Ruche<\/a>, <a href=\"https:\/\/www.gofundme.com\/fr-ca\">GoFundMe<\/a>..<\/p>\r\n\r\n\r\n\r\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Angel_investors\"><\/span>Angel investors<span class=\"ez-toc-section-end\"><\/span><\/h3>\r\n\r\n\r\n\r\n<p class=\"wp-block-paragraph\"><strong>Angel investors<\/strong> are retired corporate executives and wealthy individuals with a passion for entrepreneurship who wish to invest in SMEs. They have extensive expertise and several years&#8217; experience in the field. They also benefit from an extensive network of contacts.<\/p>\r\n\r\n\r\n\r\n<p class=\"wp-block-paragraph\"><strong>Angel investors<\/strong> are prepared to invest between $100,000 and thousands of dollars in a start-up project, in exchange for <strong>management oversight<\/strong>, a <strong>seat on the board of directors <\/strong>, and a <strong>guarantee of total transparency<\/strong> in financial, administrative and human resources <strong>management<\/strong>.<\/p>\r\n\r\n\r\n\r\n<p class=\"wp-block-paragraph\">You have access to platforms that put you in touch with angel investors, such as <a href=\"https:\/\/angesquebec.com\/en\">Anges Qu\u00e9bec<\/a>, <a href=\"https:\/\/www.canadainvestmentnetwork.ca\/entrepreneurs-home?gclid=CjwKCAjwzo2mBhAUEiwAf7wjkkNPwNGFcYuvKwOS0YaWQ8Oo7mGBej3891N1kZKgihp65QMZFXwLqxoCRz4QAvD_BwE\">Canadian International Angel Investors<\/a>..<\/p>\r\n\r\n\r\n\r\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Business_incubators\"><\/span>Business incubators<span class=\"ez-toc-section-end\"><\/span><\/h3>\r\n\r\n\r\n\r\n<p class=\"wp-block-paragraph\">Business incubators focus on <strong>start-ups in the high-tech sector<\/strong>, such as biotechnology, information technology and industrial technology.<\/p>\r\n\r\n\r\n\r\n<p class=\"wp-block-paragraph\">Incubators offer companies the opportunity to share administrative resources, premises and logistical and technical resources.<\/p>\r\n\r\n\r\n\r\n<p class=\"wp-block-paragraph\">As a general rule, a start-up company stays in an incubator for 2 years. Once its products or services have matured, it leaves the incubator to stand on its own two feet.<\/p>\r\n\r\n\r\n\r\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Government_subsidies\"><\/span>Government subsidies<span class=\"ez-toc-section-end\"><\/span><\/h3>\r\n\r\n\r\n\r\n<p class=\"wp-block-paragraph\">The government has everything to gain from the contribution of project owners. That&#8217;s why it offers subsidies to entrepreneurs through programs designed to inject funds into companies. <strong>Government subsidies<\/strong> cover expenses related to research and development, salary payments, marketing campaigns and equipment acquisition, as well as productivity enhancement.<\/p>\r\n\r\n\r\n\r\n<p class=\"wp-block-paragraph\">Payment is subject to certain conditions:<\/p>\r\n\r\n\r\n\r\n<ul class=\"wp-block-list\">\r\n<li style=\"list-style-type: none;\">\r\n<ul>\r\n<li>provide a detailed work plan outlining the costs involved in setting up the business;<\/li>\r\n<\/ul>\r\n<\/li>\r\n<\/ul>\r\n\r\n\r\n\r\n<ul>\r\n<li style=\"list-style-type: none;\">\r\n<ul>\r\n<li>deliver a project description;<\/li>\r\n<\/ul>\r\n<\/li>\r\n<\/ul>\r\n\r\n\r\n\r\n<ul>\r\n<li style=\"list-style-type: none;\">\r\n<ul>\r\n<li>explain the benefits of the project;<\/li>\r\n<\/ul>\r\n<\/li>\r\n<\/ul>\r\n\r\n\r\n\r\n<ul>\r\n<li style=\"list-style-type: none;\">\r\n<ul>\r\n<li>describe the experience and background of the management..<\/li>\r\n<\/ul>\r\n<\/li>\r\n<\/ul>\r\n\r\n\r\n\r\n<p class=\"wp-block-paragraph\">Each application is assessed according to the innovative nature of the project, the applicant&#8217;s needs, approach and know-how.<\/p>\r\n\r\n\r\n\r\n<p class=\"wp-block-paragraph\">Grants may also be refused on the grounds of :<\/p>\r\n\r\n\r\n\r\n<ul class=\"wp-block-list\">\r\n<li style=\"list-style-type: none;\">\r\n<ul>\r\n<li>the company is located in an ineligible region;<\/li>\r\n<\/ul>\r\n<\/li>\r\n<\/ul>\r\n\r\n\r\n\r\n<ul>\r\n<li style=\"list-style-type: none;\">\r\n<ul>\r\n<li>a lack of precision in the research plan;<\/li>\r\n<\/ul>\r\n<\/li>\r\n<\/ul>\r\n\r\n\r\n\r\n<ul>\r\n<li style=\"list-style-type: none;\">\r\n<ul>\r\n<li>an unrealistic project;<\/li>\r\n<\/ul>\r\n<\/li>\r\n<\/ul>\r\n\r\n\r\n\r\n<ul>\r\n<li style=\"list-style-type: none;\">\r\n<ul>\r\n<li>a lack of justification for the request..<\/li>\r\n<\/ul>\r\n<\/li>\r\n<\/ul>\r\n\r\n\r\n\r\n<p class=\"wp-block-paragraph\">You have several choices of government agencies, such as <a href=\"https:\/\/www.bdc.ca\/fr\">BDC<\/a> and <a href=\"https:\/\/www.futurpreneur.ca\/fr\/\">Futurpreneur<\/a>, to finance your business start-up.<\/p>\r\n\r\n\r\n\r\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Financial_assistance_from_private_banks\"><\/span>Financial assistance from private banks<span class=\"ez-toc-section-end\"><\/span><\/h3>\r\n\r\n\r\n\r\n<p class=\"wp-block-paragraph\"><strong>Private banks and credit unions<\/strong> also play their part, offering commercial loans to entrepreneurs. Loan conditions depend on the lending institution. In most cases, lending institutions require you to <strong>put up assets as collateral<\/strong> (such as your car or house). The absence of collateral reduces the chances of financing.<\/p>\r\n\r\n\r\n\r\n<p class=\"wp-block-paragraph\">In addition to a financial boost, lenders also provide personalized services, flexible repayment terms and a solid business plan..<\/p>\r\n\r\n\r\n\r\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Love_money\"><\/span>Love money<span class=\"ez-toc-section-end\"><\/span><\/h3>\r\n\r\n\r\n\r\n<p class=\"wp-block-paragraph\">Love money is <strong>money from people close to you <\/strong>: your partner, a family member or a friend. Your friends and family can become shareholders in your project. In institutional jargon, this investment model is known as <strong>patient capital<\/strong>. In other words, the sum lent can be repaid later and progressively as the company generates profits.<\/p>\r\n\r\n\r\n\r\n<p class=\"wp-block-paragraph\">Financial experts advise entrepreneurs to draw up a <strong>precise<\/strong> <strong>shareholders&#8217;<\/strong> or <strong>loan<\/strong> <strong><a href=\"https:\/\/avocat-montreal.ca\/en\/family-law\/everything-you-need-to-know-about-a-cohabitation-agreement-in-canada\/\">agreement<\/a><\/strong> to avoid later conflicts. Some lenders may also require a stake in the company. Intensive prior consultation and exchange between the lender and the project owner are essential.<\/p>\r\n\r\n\r\n\r\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Venture_capital\"><\/span>Venture capital<span class=\"ez-toc-section-end\"><\/span><\/h3>\r\n\r\n\r\n\r\n<p class=\"wp-block-paragraph\"><strong>Venture capital<\/strong> comes from investors who wish to invest in <strong>high-tech <\/strong>and promising companies in the communications, information technology and biotechnology sectors. Investors ask for a stake in the company in return for financing its development.<\/p>\r\n\r\n\r\n\r\n<p class=\"wp-block-paragraph\">Unlike angel investors, <strong>venture<\/strong> capitalists are prepared to disburse millions of dollars in exchange for a high return.<\/p>\r\n\r\n\r\n\r\n<figure class=\"wp-block-image size-full\"><img decoding=\"async\" width=\"640\" height=\"396\" class=\"wp-image-27455\" src=\"https:\/\/avocat-montreal.ca\/wp-content\/uploads\/2023\/07\/financement-entreprise-2.jpg\" alt=\"Les porteurs de projet profitent d'un large choix de solutions de financement d'une entreprise au d\u00e9marrage.\" srcset=\"https:\/\/avocat-montreal.ca\/wp-content\/uploads\/2023\/07\/financement-entreprise-2.jpg 640w, https:\/\/avocat-montreal.ca\/wp-content\/uploads\/2023\/07\/financement-entreprise-2-300x186.jpg 300w\" sizes=\"(max-width: 640px) 100vw, 640px\" \/><\/figure>\r\n\r\n\r\n\r\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Best_practices_for_obtaining_financing_for_a_start-up_company\"><\/span>Best practices for obtaining financing for a start-up company<span class=\"ez-toc-section-end\"><\/span><\/h2>\r\n\r\n\r\n\r\n<p class=\"wp-block-paragraph\">Obtaining financing requires know-how. You also need to avoid mistakes that could jeopardize your application.<\/p>\r\n\r\n\r\n\r\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_you_need_to_do_to_secure_start-up_financing\"><\/span>What you need to do to secure start-up financing<span class=\"ez-toc-section-end\"><\/span><\/h3>\r\n\r\n\r\n\r\n<p class=\"wp-block-paragraph\">Before applying for financing, knock on the right door. Choose a financing solution based on your needs, the nature of your business and your financial capacity.<\/p>\r\n\r\n\r\n\r\n<p class=\"wp-block-paragraph\"><strong>Equity capital<\/strong>, i.e. personal funds, money from relatives and government grants, is <strong>non-dilutive<\/strong>. In other words, their repayment will not impact your future profits. These solutions are suitable for start-ups.<\/p>\r\n\r\n\r\n\r\n<p class=\"wp-block-paragraph\">The resources of financial institutions are essential for companies with a solid foundation, which are already generating sufficient profits to cover their debts.<\/p>\r\n\r\n\r\n\r\n<p class=\"wp-block-paragraph\">What&#8217;s more, the entrepreneur needs to have good communication skills and be able to convince his banking institution through a solid business plan.<\/p>\r\n\r\n\r\n\r\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Mistakes_to_avoid_when_applying_for_start-up_financing\"><\/span>Mistakes to avoid when applying for start-up financing<span class=\"ez-toc-section-end\"><\/span><\/h3>\r\n\r\n\r\n\r\n<p class=\"wp-block-paragraph\">Entrepreneurs can&#8217;t afford to <strong>misjudge the return on investment<\/strong>. They need to be sure of the soundness of their idea and the feasibility of their project.<\/p>\r\n\r\n\r\n\r\n<p class=\"wp-block-paragraph\">Another common mistake is <strong>underestimating the amortization period<\/strong> (the time needed to repay the loan). It&#8217;s in the project owner&#8217;s interest to anticipate possible delays in <strong>business financing<\/strong>, and the complications and unforeseen events along the way that could disrupt repayment.<\/p>\r\n\r\n\r\n\r\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\r\n\r\n\r\n\r\n<p class=\"wp-block-paragraph\">The launch of a business depends on obtaining the necessary financing. Whether it&#8217;s grants, venture capital, socio-financing, business incubators, loans or love money, the stakes are high. Regardless of the financing model you choose, you face a major legal challenge.<\/p>\r\n\r\n\r\n\r\n<p class=\"wp-block-paragraph\">Whatever your decision, it&#8217;s essential to have a<strong> <a href=\"https:\/\/avocat-montreal.ca\/avocat-droit-des-affaires\/\">business lawyer<\/a><\/strong> on your side to provide strategic advice on start-up financing.<\/p>\r\n\r\n<p>&nbsp;<\/p>","protected":false},"excerpt":{"rendered":"<p>The start-up phase is the most difficult part of any business creation project. This fundamental stage requires start-up capital. How can you find the funds you need to launch your business? Here&#8217;s a summary of the best solutions for financing a business start-up. What is start-up financing? Obtaining financing is a sine qua non for [&hellip;]<\/p>\n","protected":false},"author":53,"featured_media":27453,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_yoast_wpseo_focuskw":"","_yoast_wpseo_title":"","_yoast_wpseo_metadesc":"","footnotes":""},"categories":[11,2016],"tags":[],"class_list":["post-27856","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog","category-business-law"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.8 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Financing a start-up company | AM<\/title>\n<!-- Admin only notice: this page does not show a meta description because it does not have one, either write it for this page specifically or go into the [Yoast SEO - Settings] menu and set up a template. -->\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/avocat-montreal.ca\/en\/blog\/financing-a-start-up-company\/\" \/>\n<meta property=\"og:locale\" content=\"fr_FR\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Financing a start-up company | AM\" \/>\n<meta property=\"og:description\" content=\"The start-up phase is the most difficult part of any business creation project. This fundamental stage requires start-up capital. How can you find the funds you need to launch your business? Here&#8217;s a summary of the best solutions for financing a business start-up. What is start-up financing? Obtaining financing is a sine qua non for [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/avocat-montreal.ca\/en\/blog\/financing-a-start-up-company\/\" \/>\n<meta property=\"og:site_name\" content=\"AM\" \/>\n<meta property=\"article:published_time\" content=\"2023-08-01T18:03:00+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-11-17T17:07:54+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/avocat-montreal.ca\/wp-content\/uploads\/2023\/07\/financement-entreprise-1.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1000\" \/>\n\t<meta property=\"og:image:height\" content=\"548\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Geoffrey Pin\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<script type=\"application\/ld+json\" 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