Post-Covid and state guarantees: how to find financing solutions?

In these uncertain times with Covid-19, it is not always easy for companies to find financing solutions for their investments or even to launch their business. Accordingly, to support the national economy in this time of unprecedented crisis, the French government has launched the PGE state-guaranteed loan scheme. But other solutions, whether traditional or more innovative, must also be considered, including financial rental solutions, which offer many benefits. We explain how...

The PGE state-guaranteed loan

The Prêt garanti par l’État loan is a special mechanism that allows companies, regardless of their size and status, to take out a loan with their usual banking institution or, as of May 6, 2020, with a loan provider holding the status of a crowdfunding intermediary, for which the State will act as guarantor.
This loan can reach the sum of three months’ worth of 2019 turnover or two years of payroll for innovative companies, or for companies created since January 1, 2019. If no repayment is required in the first year, the companies undertake to amortise their loan within five years.

The traditional bank loan

Of course, the traditional bank loan is still a very popular method of financing, which makes it possible to release large sums of money. However, banks may be reluctant to support entrepreneurs who are not already in a strong position and, more importantly, do not have enough for the down payment.
It is important to approach a variety of banking institutions to examine the best rates. You may be able to enlist a broker to help you with this.


When starting a business or investing, it is obviously financially attractive to make your own personal contribution. This will enable you to attract not only other investors, but also banking institutions which, as mentioned above, require a down payment before a loan can be granted.

Financial rental

Financial rental is a very attractive solution for obtaining high-performance equipment while minimising your debt levels and maintaining your investment capacity and your cash flow. This system consists of renting a fleet of equipment over a long period of time via a financing company such as Olinn.
Not only do you benefit from high-performance equipment that meets your needs, but also from all associated services: maintenance, troubleshooting, etc. You have access to tailor-made, scalable solutions adapted to your needs and your financial or operational constraints.


Lease-purchase works on the same principle as long-term rental, but you have an option to buy at the end of the contract.


Leaseback can also be a sensible financing solution, similar to financial rental. As before, this involves using a financing company that will buy back your old, obsolete equipment at its net value. This will provide you with a cash infusion and allow you to take out a 24-month lease for the new equipment you need. This contract then works in the same way as financial rental.

The honour loan

An honour loan is taken out by a person and not a company. The project initiator does not need to provide a guarantee, but simply makes an “honourable” commitment in the literal sense. The loans obtained, at zero interest, are generally not very large. It is more of a starter bonus than a true financing method in its own right.


Crowdfunding is an alternative financing solution that does not go through traditional channels. The aim is to raise funds from Internet users. This solution can replace or complement traditional methods of financing. It can be used to launch a business or to acquire equipment.

Venture capital

Venture capital is when capital is made available to unlisted companies. The investor participates financially in the development of innovative, high-potential companies, such as start-ups, and should then be able to realise a significant capital gain when the shares are sold.


Depending on your business, your years of operation and your company's situation, you may be eligible for certain subsidies, which are "gifts" from the State, organisations or local authorities. It is not a financing mechanism in its own right, but rather a complement to financing. It is essential to find out in advance what aid you are entitled to.

Olinn helps you find financing solutions!