Reach out to the right people
All banks and all investors may be eligible to finance SWF projects. However, some institutions are more sensitive to this issue than others and are more familiar with the specifics and codes of the SSE.
” Not all banks have the same business model or the same type of investment.allocated Emmanuel Gagnerodirector of the social and solidarity economy department of the Crédit Cooperatif. There are few banking networks specializing in SES, but by entering them, you will be convinced that the advisers who are in front of you know SES and its specifics, and not just in speeches “.
Convince the sponsor of the interest and sustainability of the project
But whichever institution you choose, you will have to prove yourself. ” A banker is someone who will lend you money: he needs to pay back the money. Therefore, he will evaluate the risk he is taking before making a commitment. He needs to be calmed down “, warns Marie Leclerc-BruantResponsible for SSE clients in the Caisse d’Epargne development department of the BPCE group.
” Whether it’s a bank or an investor, they will be looking for the structure’s ability to repay its debt. ”, confirms Christopher Genter, Director of Social and Territorial Cohesion of the Banque des Territoires Investment Department. Therefore, the project manager must prove your concept: show that it meets a proven social need, that the chosen economic model is viable.
Among the points that sponsors will pay attention to, in addition to classic triptych social business plan – preliminary budget – cash flow planinsists Marie Leclerc-Bruant. the importance of the team and project leader ” AGAINSTthis is generally what makes a structure durable: a multidisciplinary and cohesive team “. With a project manager who is able to clearly present his vision, his missions, his values.
Prepare a reliable and documented file
” SSE and social entrepreneurship do not fit into the classical economic models of a profitable and capitalist economy. Therefore, the entrepreneur is extremely interested in being pedagogical, explaining his social and environmental value, etc. “ recommends Emmanuel Gagnero. Therefore, the project manager must prove that he has a course, a strategy.
It is recommended not to dwell on purely financial data. ” We are very attentive to non-financial impacts : We are looking for more than just financial value– admits Christoph Genter. Therefore, we appreciate that the non-financial indicators have already been determined, this allows us to show that the structure will allow for more and more impacts and at what pace “.
” If we see that a company can tell us about its impact diagnostic and outcome measurement tools, like a bank, for example, that will give us confidence.Marie Leclerc-Bruant adds. Especially since we are talking more and more about results-based financing: we know that donors and potential partners will be sensitive to it. “.
Make a coherent… and reasonable request
After the structure has been presented, it is necessary to move on to the needs. ” The project manager must show how the requested funding is consistent and realistic for the development of the company continues Emmanuel Gagnero.
However, Christoph Genter recommends staying reasonable about the request: ” You should not try to make an investor dream by wanting to raise all the funds too quickly. If the step is too high, he won’t go. “. He recommends conduct a consistent fundraiser to ensure that the business plan is properly executed and to be able to adjust the project and strategy over timeif necessary.
Join the Partner Ecosystem
Another important point: surround yourself well. ” Get closer to the SSE Territorial Ecosystemencourages Marie Leclerc-Bruant. We know as a bank that a supported project is more likely to be sustainable. “Professionals supporting creation, such as those from the Emergence and Acceleration community, help structure the project, ensure networking, working hand in hand with sponsors and local players.
In addition to these support professionals, get support from local authorities, join a network or federation also proves that the person is not alone and enjoys recognition. ” So it’s likely they’ll move on. “ continues Marie Leclerc-Bruant. A crowdfunding campaign, for example, can simultaneously show that the project leader has been able to mobilize the community and that it is well structured in terms of communication.
Look for other sources of funding
Another recommendation: be interested in calls for projects and competitions. ” There are many grants to receive. They can help establish a project and reassure sponsors or bankers. “ advises Christoph Genter. ” French Impact organizes sponsor conferences to bring project leaders and influential investors together, a real opportunity to meet sponsors. ”, continues Christoph Genter.
That seed fund just like France Active makes sense or Alliance For Impact offer great opportunities for project managers. Opportunity to be recognized before visiting a larger sponsor. ” This may affect funding, allowing Leverage Effect: When a sponsor enters into a deal, it can lead to a domino effect.others will follow “ confirms Emmanuel Gagnero.
Obviously, the first sponsor should already be ready to take the plunge. ” The project manager can request a letter of interest, even a non-binding one, from potential sponsors.recommended by Christoph Genter. This attracts other investors who see that some of them are ready to invest. Because the financier often does not want to go there alone “.
Bankers and investors also agree to recommend that project organizers enter into mutual trust approach with them : ” At any cost, the entrepreneur must consider the bank as his partner. Indeed, we will raise awareness, inform him, invite him to events, etc.Emmanuel Gagnero explains. It’s not just someone who fulfills needs, you have to put the relationship in a different logic and exchange “Because, once completed, the sponsor will have the same interest as the project manager: that the latter succeed as best as possible.
>> See the file Obtaining Funding published by Avise
>> Also open the manual I speak fluent bankingby France Active