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Solutions to finance your freelance expenses

Solutions to finance your freelance expenses

Working as a freelancer has many advantages. However, some difficulties may loom on the horizon when you decide to start your own business. Apart from the various expenses to be made, access to credit from financial organizations is not often easy for the self-employed.

What are the options available to a freelancer for the financing of his activities?

Apply for a microcredit

Like any other worker, a self-employed or freelancer could face financing needs. As a self-employed person, you could encounter many difficulties with traditional banking organizations when it comes to granting loans.

As a result, some financial organizations offer to make a freelance loan. The self-employed worker therefore has the possibility of borrowing a microcredit for a project or a financial emergency. For example, on the Finfrog platform, freelancers can easily obtain credit for amounts ranging from 100 to 600 euros without proof of purchase or sending proof of income by mail.

It should be noted that obtaining the freelance loan under this regime is subject to three key conditions, which are:
> the majority of freelancers;
> residence in metropolitan France;
> and possession of a current account in a French bank.

If you meet these conditions, the formalities are simply done in a few minutes. All you need to do is provide information such as their personal details, bank details and a valid ID.

Obtaining the response for a microcredit is also very fast. Then, your bank account is credited a few hours after the acceptance of the file. In addition, the terms of reimbursement are very clear. By using the online micro-credit simulator, you can even define the repayment term according to your possibilities, in 3, 4 or 6 months. You can then organize yourself better for payments.

Subscribe to a loan of honor

The honor loan is a zero-rate loan that only requires the good word of the entrepreneur as collateral. Business creators or managers of structures under three years of age can personally benefit from this loan.

The honor loan can vary from 2,000 to 50,000 euros depending on the organization. In return, the borrower agrees to repay the loan in less than 5 years. With personalized support from industry professionals, freelancers manage to keep their business afloat.

In any case, the entrepreneur must maintain some security in his cash flow to repay the loan on time in order to respect the contract.

Use public subsidies

It should be remembered that freelancers are considered as businesses. As a result, they can benefit from various public aids. For example, you can choose the new support for business creation or NACRE and financing by the Caisse d'Allocation Familiale.

The new support for business creation

This system allows self-employed workers to benefit from support over 3 years. This support is divided into three areas: assistance in setting up the project, assistance with financing and support.

With the NACRE, the freelancer can take out a loan at zero interest without guarantee. In addition, financing by NACRE depends on the regions and is subject to certain conditions. Among other things, the entrepreneur should be between 18 and 25 years old. Also, he should benefit from the specific Solidarity Allowance (ASS).

CAF funding

To meet major or unforeseen expenses as a self-employed person, you can apply to the Caisse d’Allocation Familiale or CAF. You could benefit from advantageous zero-interest loans with fairly flexible repayment terms.

To benefit from financing for self-employed workers from the CAF, you must complete the applications provided for this purpose and specify the information relating to your company. If the CAF offers many financing offers, the activity bonus corresponds best to freelancers.

It is donated to freelancers with low incomes. This is state aid to encourage low-income workers over 18 to start a business. This premium replaces the minimum active solidarity income or RSA.

In addition, to benefit from it, you must be a French worker residing in France. Foreigners in a regular situation for a minimum of 5 years can also benefit from it. Finally, CAF loans are governed by local policies and it is necessary to consult the CAF terms and conditions of your department of residence.

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