Very aware of the stake and difficulties to finance startups in France, Banque Wormser Frères has launched in 2014 a venture loan department. This activity consists of tailor made loans for startups which have proved the economic reliability of their concept, expecting a multi thousand euros turn over, and a short term probability to reach profitability within 1 to 2 years. This activity confirms the Banque Wormser Frères’ DNA : an entrepreneur bank for entrepreneurs.
When delivered simultaneously with a capital fund raising, venture loan allows to match it without extra significant dilution and helps startups to reach profitability. As a counterpart the interest rate is high (between 8 and 10%) and an option on the company’s capital is granted to the bank to compensate the risk.
In order not to penalize the growth of the accompanied startups, the loan offers a capital franchise of one year and then a reimbursement period of approximately 3 years with regular monthly payments.
The amount of the loans is comprised between 250.000 and 2 million euros and is limited by the rule one euro of venture loan for 2 euros of equity. From the legal point of view, venture loan is almost considered as equity.
If your company fits with these criteria don’t hesitate to contact us firstname.lastname@example.org. We will get back to you rapidly.