How much can I borrow and do I need to have my own starting capital?

How much can I borrow and do I need to have my own starting capital?

How much you can borrow will depend not only on how much you can invest out of your own pocket, but more importantly on how much you can repay. Your repayment capacity is in fact the most important criterion for assessing your loan application. You and your KBC relationship manager will identify your specific financing needs based on your investment plan and any quotes you’ve received.

Why is it important to put up your own money?

Investing your own funds into your project reflects your personal involvement. You and the bank are making a joint commitment to finance it. Every company must be sufficiently solvent, i.e. you must be able to pay back what you’ve borrowed. In other words, you must have liquid assets. The more money you put in, the bigger the buffer you build up.

How is the amount I put in determined?

The bank takes a number of factors into account when determining how much you should put in:

  • The riskier the investment, the more you will be asked to put in.
  • Sufficient repayment capacity is a minimum requirement. The bank will calculate how much you have to repay on the new loan each month. The more you have left over after that calculation, the more chance you have of getting approval.
  • Various governments have developed support measures to encourage investment. To count as part of the money you’re putting in, these grants must have already been awarded to you.
  • The amount you are required to put in may be much lower for new financing if the company has used its own funds for other investments in the past year.
  • Security also plays a role in the decision-making process as it reduces the risk for the bank. However, it can never fully replace your own financial input.

15% own funds

lening berekenen

A considerable effort on your part is required when financing an investment. We would look for you to put up at least 15% of the total figure for expansion investments, but we will always examine your specific situation. For example, investments made to replace equipment would require you to put up at least the residual value of the second-hand equipment.

What if I need my own funds for something else?

Get financed by the bank

If you need your own funds to finance something else, you can always come and discuss the financing options for working capital, such as the KBC Brussels Advance in Current Account and the KBC Brussels Business Credit via Straight Loans. Or the  KBC Brussels Investment Credit.. We always look at the total financing requirement and, together with you, examine how you can best use your own financial resources.

Can I use funds provided by family or friends?
It depends on whether you were given that money or have borrowed it. In such cases, the bank will always ask whether you have to repay the money involved and under which conditions. This is important because it helps determine your capacity to make repayment, at least if the money being repaid has to come from the company itself.