What is facilitated finance?
Facilitated Finance is a form of financing characterized by interventions provided by the national, regional or Community legislator, which have as their objective to encourage the development of entrepreneurship, making financial instruments available to businesses at more advantageous conditions than those of the market and encourage the development of new projects, the implementation of new investments or the hiring of new staff.
The objective is therefore to encourage the development of entrepreneurship, encouraging the emergence of new realities.
Facilitated finance can make use of a variety of instruments: from subsidized loans to tax reliefs, non-repayable grants, credit guarantees and investment instruments in risk capital.
The sources of facilitated finance are, in fact, different: they range from EU legislation, which makes resources available to businesses, professionals and aspiring entrepreneurs, through funds, up to national legislation.
When we talk about contributions and benefits for companies, we almost always think only of non-repayable ones. In reality, subsidized finance provides start-ups and SMEs with a variety of tools to suit different needs:
tax and social security relief
instruments for intervention in risk capital
Most of the EU, regional and national public contributions are intended for Micro, Small and Medium Enterprises, but there are numerous facilities for innovative start-ups, aspiring entrepreneurs, female and young entrepreneurs (under 35), who often benefit from specific funds.
The actors of facilitated finance are:
Regional authorities including municipalities, unions of municipalities, mountain communities, provinces are funding bodies that have the purpose of promoting local territorial development, through individual projects or associates;
Very often, the banks that finance start-ups are those that favor an innovative relationship with the public administration and businesses and act as financial and strategic partners for development projects to be implemented, favoring the growth objectives of the territory and the entrepreneurial fabric; banks often use micro-credit as a start-up financing channel, defined as “small credit aimed at starting up an entrepreneurial activity or to meet emergency expenses, towards socially and economically vulnerable people, who are generally excluded from the formal financial sector”;
Calls for tenders are also one of the main sources of financing for start-ups. Public tenders make it possible to obtain non-repayable grants or low-interest loans for the creation and expansion of businesses.
Facilitated finance in BizPlace
BizPlace has a deep knowledge of the world of subsidized finance and can offer its start-ups various solutions ranging from bank and microcredit financing to public tenders, always looking for the best conditions to encourage the development and success of the business project.
BizPlace is responsible for presenting the documentation of the start-ups to the various investors who provide the funds.