HOW DOES THE “READY FOR INNOVATION” SCHEME WORK?

The Loan for Innovation or PPI scheme is a financial aid scheme specific to innovative companies. It finances the expenses necessary for equipment and intangible investments, which are rarely subsidised by banking organisations. Find information in this article.

FIND OUT MORE ABOUT THE PPI OR LOAN FOR INNOVATION

The “innovation loan” scheme is a financial subsidy scheme for companies requiring funds to bring innovative products and services to market. The innovation loan or PPI actually intervenes in the product marketing phase. Lending banks provide loans for income-generating projects, such as business start-ups, acquisition of logistics, and so on. Many companies face a financing hurdle in bringing innovative products to market. Commercialization requires significant investment to increase product awareness. It is often necessary for the company to participate in event fairs, recruiting, and other projects still requiring funds. The Loan for Innovation is thus the financing answer to this need.

THE SPECIFICS OF THE INNOVATION LOAN

The “loan for innovation” scheme has several specific aspects compared to other bank loan products, including the amount of the loan to be granted. Depending on the case, there are banks that cap the value of the loan at twice the borrower firm’s equity. The other point that differentiates the Innovation Loan from others is the commitment period, in other words, the repayment period. This can be spread over a period of seven (7) years with a deferred payment of monthly installments of two (2) years. The rate applied to the loan may be variable or fixed rate, with an interest-bearing loan. Lending institutions apply a 5% holdback. No guarantee or guarantee will be required from the company.  The companies eligible for the MIP are JEI or Young Innovative Enterprises, SMEs or Small and Medium Enterprises.

THE TERMS AND CONDITIONS FOR GRANTING THE LOAN

To contract this seven (7) year innovation credit, the innovative companies concerned can carry out the required administrative formalities at the BPI agency or the Public Investment Bank closest to your firm’s head office. You must have all the legal documents necessary to compile the loan application file. The official documents of the company and the innovative service developed will serve as supporting documents. The person in charge always carries out a thorough analysis of your file the seriousness of the innovative service proposed upstream, with a view to granting the adapted credit downstream.

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