How can I get a quick loan as a business?

How to get a quick loan for your business at its creation?

The pre-seed phase of a business refers to the initial financing needs of a business. The financing obtained during this phase is generally used to design the product or service and develop the commercial offer.

The three most popular means of financing pre-seed are love money, microcredit and crowdfunding. But a new efficient alternative is emerging: Revenue Based Financing.

Love money

The love money is the funds collected from friends and family of the entrepreneur. The love money investor, in return, benefits from shareholder rights on the company and a tax reduction.

This means of financing is non-dilutive and generally fast. It is essential that the entrepreneur has relatives with a certain amount of capital in order to be able to invest in his business.

Bank loan or microcredit

The first solution for a company is to approach banks to obtain a traditional bank loan. However, being "early", many companies do not manage to meet the strict criteria of the banks.

On the other hand, microcredit is easier to access. The added value of a microcredit is the follow-up of the project by the people granting the cash.

This follow-up can take different forms: assistance in administrative procedures, help with cost management, business development, customer acquisition. Microcredits are generally financed by associations. The selection of a microcredit project is based on three criteria:

The project leader: his or her experience, ability to execute and skills, etc.
The project: the market, traction, customers, etc.
The ability to repay.

Crowdfunding

Crowdfunding also called "participatory financing" is a collection of donations. Crowdfunding platforms exist to connect businesses with individuals.

Crowdfunding is a way for a business owner to get individuals to participate financially in his or her business. This financing tool is particularly adapted for B2C businesses.

The differentiating advantage of crowdfunding is that it increases the company's visibility and creates a community of "early adopters" around the project.

Why can FBR be a good solution?

Karmen is a start-up offering a revenue-based financing solution, i.e. a non-dilutive financing tool that transforms a company's future revenues into immediate cash flow.

This alternative to traditional financing is revolutionary and its use is exploding in Anglo-Saxon countries.

To summarize

Here is a summary table of existing financing tools to support the growth of a company:

Method	Definition	Benefits	Disadvantages
Love Money	Love money is generally the first recourse of entrepreneurs at the beginning of their project. It consists of donations made by the entrepreneur's entourage (family and friends)	Fast	Need an entourage with funds
Business Angel	A business angel is an individual who invests his or her personal funds in the company	Fast	Need for a network
The RBF (Karmen)	RBF advances a company's recurring revenue in a non-dilutive manner. Karmen is the start-up that offers companies a digital and efficient FBR financing	Fast / Non-dilutive	Limited to companies with recurring revenues
Series A, B, C ...	A company preparing its international development raises additional funds defined by 'series'.	Thinner	Time consuming process
Honorary loans	An honorary loan is financed by the region in which the company is located. The recipient commits to repay the investment after 3 to 5 years. The institutions granting loans of honor are associations like Réseau Entreprendre	The amount can be up to 90 000 € / Non-dilutive	Time-consuming process and limited amount
Microcredit	Microcredit, generally intended for businesses that have difficulty finding financing, is a more accessible bank loan than basic bank loans	Easy to access / Non-dilutive	Generally small amounts
Incubators	An incubator is a structure that supports the entrepreneur at the beginning of his project. An incubator can take several forms: company, association, school...	Creation of a network / Visibility and credibility with investors	Generally does not provide significant funding
The competitions	Associations, schools, organizations and foundations organize competitions for entrepreneurs. These competitions usually lead to a monetary prize	It is a non-dilutive and free solution	Registering and going through the steps of the competition can be time consuming compared to the amount of money

How can I get an emergency loan to finance my cash flow?

FBR is a good solution for a quick loan

The RBF is by far the fastest funding tool available. Why is it important to be fast in the financing process? In the early stages of a business, speed and quality of execution are major factors in the success of the business. Speed of financing goes hand in hand with speed of execution.

Getting financed quickly allows you to recruit, develop the prototype and build a website that will be operational more quickly. You will have understood, the speed of financing is therefore key in the start-up and expansion of a company.

FBR is more suitable than other financing methods

Let's compare FBR with other financing methods. An honorary loan is an alternative to a traditional loan. This method has a low probability of leading to concrete financing and is less expensive than a traditional loan, but is no less time-consuming. Moreover, the amounts granted are limited.

Now let's compare FBR to a fundraising: a fundraising requires a lot of energy and takes on average 9 months to lead to a financing. Indeed, instead of dealing with the concrete operations of the company, the founders have to take the time to make a complete file, a deck, a meticulous presentation and meetings with many venture capital funds. Finding out if you are eligible for FBR takes only 48 hours, allowing founders to stay focused on the company's operational priorities.

RBF is a non-dilutive loan

The major comparative advantage of the FBR is its speed and the non-dilution of the capital. Indeed, unlike a fund raising, the RBF is a non-dilutive solution.

But what is capital dilution? Dilution is when a company has to give a part of its share capital against investment. The increase of the capital by issuing new shares will generate this dilution.

The major disadvantage of dilution is that the entrepreneur at the helm loses decision-making power. Issuing new shares will create new voting and decision-making rights for new investors.

This dilution, in turn, leads to lower earnings per share.

Karmen avoids this dilution while being a fast and digitalized solution.

How can I get a quick business loan from Karmen?

Indeed, Karmen allows digital companies to finance their growth in a non-dilutive way and very quickly.

At Karmen, the investor has no direct ownership in the business and requires no fixed payments. Payments will be defined according to the company's revenues . Karmen uses a tool to anticipate a company's future revenues.

In concrete terms, if your income decreases during a month, the royalties to Karmen will be reduced proportionally . Conversely, if the company's revenues increase drastically during a month, the royalties will increase simultaneously.

Karmen offers an alternative to fund-raising that enables a greater number of companies to obtain financing.

In fact, Karmen has no particular requirement for a particular business sector or ultra-tech product, as a venture capital fund might have.

Getting a quick loan is the essence of Karmen's offer, as a business can receive cash in less than 48 hours.

A quick loan for your business can be obtained in different ways: love money, business angel, seed, RBF, microcredit, honor loans, competitions or through an incubator. The RBF is the fastest solution of all. RBF is an innovative financing scheme based on the future revenues of the company. It is a tool for companies to obtain cash by promising a percentage of future revenues in exchange for the money invested. It is a good alternative to fundraising.

Karmen offers a non-dilutive, accessible financing solution that does not reduce the entrepreneur's decision-making power and, above all, is fast. With Karmen, a business can release funds in less than 48 hours. Getting a quick loan as a business is possible with Karmen.