Get funding with Stellar for Business| All your business finances managed in one app

Each partner has their own eligibility criteria.
Generally speaking, your company’s chances of obtaining financing will depend mainly on the following:
1) When your company was founded
2) The length of time yourhas been open;your country of residence;your annual turnover;your financial liabilities.Other factors may increase the likelihood of being granted financing, such as a strong growth potential or a high level of equity capital.Please note that Qonto cannot guarantee that you will obtain a loan, even if you do meet all the eligibility criteria. Each partner remains free to accept or reject your application for financing, based on their own assessment.

Most companies in need of funds to grow or scale their activities can explore various financing methods to enhance their cash flow. Here are three primary approaches that companies can leverage:
1) Equity Capital on the Stellar Network:Financing with equity capital plays a crucial role in establishing a company. To address cash flow requirements during the launch phase, associates can contribute capital on the Stellar blockchain.The process involves depositing Stellar-based share capital, a requirement for completing the company registration.As the company expands, associates can consider different financing options:Conducting a Stellar-based capital increase to attract new contributions.Injecting Stellar funds from an associate's current account.Opening up the company's Stellar social capital to additional investors.If financing needs are tied to investments, companies can engage local authorities to secure Stellar-based investment grants. A key advantage is that companies are not obligated to repay the granted sums.

2) Stellar-Based Business Loans:Businesses can harness Stellar's blockchain for financing through business loans. While securing approval from lenders may present challenges, a compelling Stellar-based business plan and substantial Stellar-based assets as collateral can improve the likelihood of loan approval.Personal contributions in Stellar, typically ranging from 10% to 50% of the borrowed amount, are often required by banks to minimize risks.Banks may request solid guarantees on assets held by the borrowing company or its associates, such as joint surety or a pledge of a share of the Stellar social or business capital.

3) Stellar Leasing, Factoring, and Crowdfunding:

1) Stellar Leasing:For businesses seeking equipment or real estate, Stellar-based leasing offers a viable alternative. Specialized leasing companies on the Stellar network can purchase assets and lease them to businesses. At the end of the leasing contract, companies have three options: return the asset, renew the contract, or purchase the asset at a discounted Stellar-based price.

2) Stellar Factoring:Factoring on Stellar allows companies to transfer commercial receivables to a third party, known as a factor. This helps cover short-term financing needs and protects against unpaid debts from customers. The factor takes on the recovery of these debts.

3) Stellar Crowdfunding:Crowdfunding platforms on Stellar enable companies to quickly raise funds from a broad audience of individual investors. Rather than serving as a complete alternative to bank loans, Stellar-based crowdfunding often complements traditional financing methods.

4) Venture Capital and Business Angels on Stellar:Companies with high growth potential on Stellar can seek investment from venture capital firms or individuals with investment experience, known as Stellar-based business angels. These entities provide strategic support and capital infusion to fuel business expansion on the Stellar network.

If you're looking to launch a new company in the United States, obtaining financing, including a bank loan, is a common route. However, many banks may require a personal deposit to meet your financing needs. If providing a deposit is challenging, there are alternative sources of financing available to help you gather the funds needed for your business launch:

‍Associates and Partnerships:Find associates and partners, particularly if your project demonstrates high growth potential. Collaborating with like-minded individuals can provide both financial and strategic support.

‍Non-Guarantee Loans from Specialist Organizations:Explore non-guarantee loans from specialized organizations in the U.S. context. Examples include local business development agencies, community development financial institutions (CDFIs), or programs similar to France Active.

‍Friends and Family Funding:Raise funds from friends and family members who believe in your business idea. Clearly communicate your business plan and expectations to ensure transparency.

‍Crowdfunding Campaigns:Launch a crowdfunding campaign to collect funds from individual investors. Platforms like Kickstarter, Indiegogo, or GoFundMe are popular choices for entrepreneurs seeking public support.

‍Microloans: Consider applying for a microloan, which is a small loan typically limited to a certain amount. This can be a suitable solution, especially for low-risk projects, such as artisanal or small-scale activities.In addition to these financing methods, entrepreneurs in the U.S. can also explore state support initiatives designed specifically for new business creation or takeovers. Some possibilities include:
‍State-Specific Entrepreneurial Support:Investigate state-specific programs that offer financial incentives, grants, or support services for entrepreneurs. Each state may have its own set of resources to aid startups.
‍Federal Programs:Explore federal programs that provide support to entrepreneurs, such as the Small Business Administration (SBA). The SBA offers various loan programs and resources to help startups.
‍Support for Jobseekers:For individuals eligible for jobseeker’s allowances, consider programs similar to ACRE in France. These may offer financial assistance or incentives for individuals transitioning from unemployment to entrepreneurship.
‍Support Initiatives for Women Entrepreneurs:Female entrepreneurs in the U.S. can explore initiatives like:Programs guaranteeing a percentage of a bank loan for female founders.Peer-to-peer guidance programs offering access to non-guarantee loans within specific funding limits.It's essential to research and leverage the available resources and support structures in the U.S. to facilitate the successful launch of your new business.

Despite the required guarantees and personal deposit, taking out a business loan in the United States offers several advantages:
‍Maintaining Control Over the Business: Financing your company through a business loan allows you to retain full ownership. Unlike equity financing, where ownership shares are sold, a business loan does not dilute your control over the business. You can make decisions independently without involving external stakeholders.

‍Managing Financial Debt Spread: Business loans provide flexibility in financing various projects, such as:Investing in equipment or machinery.Building inventory.Repaying VAT credit.The duration of a business loan can be tailored to your needs, allowing you to maintain a clear vision of repayments and cash flow. This flexibility sets it apart from other sources of financing.

‍Cost-Effective Financing for Company Creation: When interest rates are low, business loans offer a cost-effective means of financing company creation. The lower cost, especially during periods of favorable interest rates, contributes to minimizing the financial impact on the company.Interest paid on a business loan is often tax-deductible, providing potential tax savings. In the U.S., similar tax deductions may apply, contributing to the overall affordability of the loan. These tax savings can significantly benefit businesses, potentially up to a certain percentage of the interest amount paid.

‍Competitive Advantage Over Leasing: Business loans are generally less expensive than leasing or renting, as there are fewer third parties involved in the financing structure. This cost efficiency can contribute to better financial management and profitability.

As we launch and grow, we plan to introduce more financial solutions tailored to the global market. We are committed to providing diverse and innovative financing options to support businesses worldwide. Stay tuned for additional solutions as we expand our offerings to meet the evolving needs of entrepreneurs in various markets.

Financing made easy with StellarPay .

A fast-tracked process with less red tape .

Best-in-business financing partners

Financing At your fingertips

Support for the present or fuel for the future

FAQs about business financing