What are the risks associated with setting up a business without contribution?

business without contribution

The loan of honor is a loan granted to people who cannot provide personal guarantees other than honor. Set up to boost business creation, this system is intended for entrepreneurs who do not have the necessary elements required by banking establishments, such as a personal contribution.

Unlike the bank loan, the loan of honor is generally granted without interest . To benefit from it, a meticulous examination of the project is carried out by the lender. For this, it is necessary to create a complete , realistic and convincing business plan. The repayment period is defined by the latter requesting and is generally fixed over a fixed period.

Love money

The principle of love money is to use funds collected from family or friends to finance the launch of a project. This concept is based mainly on benevolence and trust, and is particularly popular with young companies.

To finance a business creation without contribution, project leaders can also use crowdfunding or participatory financing. This option makes it possible to solicit external investors free of charge thanks to dedicated platforms connecting entrepreneurs and financiers.

To do this, business creators must present their project on these platforms to find interested people. Like love money, crowdfunding can also take the form of monetary donations, equity participation or loans.

Different steps must be taken to successfully raise funds , in particular the choice of a crowdfunding platform. For this, it is important to take into account, in particular:

In the event that the project leader cannot access traditional bank credit, he can bet on micro-credit . The amount of funding granted generally does not exceed €10,000. Different micro-credit organizations can be approached, in particular:

The business creation project must be easy to carry out and must correspond perfectly to the experiences and know-how of the entrepreneur.

Business start-up assistance

To help entrepreneurs launch their project, various business creation aids are offered. These are a real advantage for business creators without input.


This system allows you to benefit from a partial exemption from social charges and support during the first years of activity. Obtaining it is subject to certain criteria.

One of these conditions is the creation of an enterprise for the integration of economic activity , the creation of an individual enterprise for example or the takeover of a commercial, industrial, agricultural, craft or liberal enterprise in the form of a company. , provided that they effectively exercise control.

Job seekers benefiting from the ARE creating or taking over a company as well as those authorized to benefit from it, but who do not receive it when the activity is launched, are among the beneficiaries of this aid.


At the beginning of its activity, once the first contract has been signed, a company placed in a critical position can resort to down payment or factoring. It is a financing and debt collection solution. The newly created company can entrust the management of its receivables to a specialized credit institution .

By opting for this method, the company obtains money and can get rid of certain administrative tasks as well as related costs.

What are the risks associated with setting up a business without contribution?

Although the creation of a company without contribution is possible, this method presents certain risks concerning the notoriety of the structure or the operation of the company.

Lack of company credibility

A company whose amount of capital is low has little credibility in the eyes of third parties . Indeed, the latter may have questions concerning the financing of the structure. This mistrust mainly concerns companies created with traditional statutes or one-person companies.

Third parties, including financiers, consider social capital as proof of determination and demonstrates the risks that the entrepreneur is willing to take to carry out his project. As a result, low capital risks harming the establishment of a relationship of trust between the company and its interlocutors. Indeed, capital is an indicator that can set partners, suppliers or even customers back.

Business dysfunction

In the absence of contribution, a company must perpetually operate with tense financial flows which can constitute a brake. Indeed, the lack of contribution can in particular prevent the organization from effectively confronting the problems or from seizing an opportunity. Moreover, it can reduce the company’s ability to grow, but also to survive.

Some studies have shown that the survival rate of a business is directly related to the amount of the contribution. The initial funding thus guarantees the sustainability of the structure.

Reduced ability to act

For entrepreneurs combining creativity, ease of learning and high availability, significant savings are possible. However, insofar as they wish to launch a project, investments are necessary (computer equipment, websites, etc.).

As the project progresses, self-financing may prove to be insufficient, altering the proper development of activities. For example, a company created without contribution may be unable to advance the amounts required to launch a recruitment procedure.

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