Many engineers today choose to work independently. In this situation, an engineer sometimes needs, to launch or boost his activity, to have recourse to credit. What are the most suitable solutions? Our advices.
Types of financing available
Depending on the chosen status, self-entrepreneur or liberal profession, the amount and the need for financing, several types of solutions are available to an engineer:
– to start your activity as an auto-entrepreneur: below $ 10,000, it is rather recommended to use micro-credit or a personal loan, of the consumer loan type;
– For amounts above $ 10,000: recourse to conventional professional credit is rather recommended.
In the liberal profession, an engineer can also finance a purchase of equipment with leasing: without contribution, it allows you to become the owner of rented equipment.
Engineering credit, what conditions?
Obtaining a loan generally requires justifying the legal existence of the company, specifying the nature of the need and presenting the latest balance sheets or a business plan. In the case of a business creation, a personal contribution can be requested: it can amount up to 30% of the amount of the project.
You may also be asked for a deposit or guarantor. If the engineer goes through a micro-credit, the dedicated financing organization, the (Association for the right to economic initiative), thus requests to present a “witness”, guarantor up to 50%.
The applicant must have secured admission to a graduate or postgraduate engineering course in college or universities recognized by Government and other such institutions. A collateral security might be insisted based on the loan amount.
The security pledged against a loan is termed as collateral. However, you can get an education loan without pledging any security. But, if you take a loan of more than the amount, the bank may ask for collateral for the loan amount. The bank may also ask you to deposit margin money and seek third-party guarantee.
Who to contact for an engineer credit?
Today, banks and credit organizations offer many solutions for independent engineers: a first solution is therefore to study the offers offered and to compete to obtain the most advantageous credit. For micro-credits, they offer specific solutions for self-entrepreneurs.
Otherwise, another solution exists: go through crowdfunding. On the Internet, credit platforms supported by a community of investors meet the financing needs of engineers. The advantage: simplified procedures and fairer rates.