Solidarity financing was already well known for business start-ups, with associations like Baritas or Coeles. It is now possible to benefit from a solidarity loan between individuals, without having to pay interest. The HelMoBo platform was one of the forerunners in this area, making financing between individuals in France an additional opportunity to allow projects, even associative to see the day.
A solidarity financing platform that has the character
At some point, in his professional or personal life, one may need money: buy a new car, finance one’s wedding, put up a box, implement a revolutionary idea, want to build a dispensary in a third world country…
The first reflex is to go to your bank. If this one refuses, how to find the necessary financing? And by asking his family, his friends and his knowledge, via an organized platform and powerful in the dissemination of information like HelMoBo. This one, besides, will select the projects according to their interests and their coherence.
These and all the curious who come to see what happens regularly on the site have access to all the information on the potential cash requirements of the project custodians. Each of them creates a page on the site, a kind of personal showcase to make known to subscribers.
The difference with a traditional PAP loan is also a simplification of administrative procedures, since it’s HelMoBo who takes care of everything. No need to go to see his taxes especially to take information, even if it is necessary to think to declare his loan to the tax office.
Find a credit step by step
Getting a solidarity loan is the opportunity to collect 10,000 euros maximum, but smaller projects can also be funded, since the envelopes start at 200 euros. It is up to each applicant to make his presentation, choosing the amount he needs to get to the end of things, as well as the period when subscriptions will stop.
At the same time, he will also discuss the reimbursement component, namely the moment when he will refund the entire sum to all those who lent him money. HelMobo will help him manage this last step, even if it is his promise to do so that remains the cornerstone of this principle of solidarity.
Indeed, nothing can oblige a borrower to repay a solidarity loan
The only way is to sue him if he misses his obligations. Fortunately, without getting there, most people do their debt in time.
Our advice: better pay off your debt before 36 months, especially given the amount borrowed (10 000 max). For those who need to start before being able to repay, a deferral is possible in the monthly installments, even if this one must not take proportions impossible to resorbed, so one must not exceed a semester.
A 0% loan?
Hard to believe, and yet. There are people who have put pennies aside, and who agree to lend them without it bringing them anything, if not the good conscience, or rather the satisfaction of having put in the service of the community. Is it unlikely to be satisfied with each other’s success in our society? In any case, it proves that speculation is not a golden rule for all, and that money can circulate without conveying a bad image.
Be careful however. There are fees to be paid on the site, which correspond to a percentage of the sums collected, between 3 and 6%, depending on the repayment period. These fees are used to allow the platform to continue to exist and to pay the people who take care of it. They are taken at the source, ie when the money is paid into the bank account of the project holder.
On the other hand, in the light of what Booklet A reports now, namely 1%, why let your savings sleep to earn 10 euros per year? As much to benefit others, which need to move forward. However, unlike a regulated savings account, recovering your invested capital is not a sure thing.
There are no guarantees or guarantees, since there are no profits to the key, for anyone. We are here in a configuration very different from that of a bank loan, the bank taking the least risk possible. But in solidarity we believe in man, and in his ability to respect his commitments. It works, in most cases.
Where to find the money?
Presenting your project is good, and it is already a first step to achieve. It remains to convince investors to put their hands in their pockets. We must start by informing all the people we know, and who might be able to help us.
The family with whom we get along well, but also friends and office colleagues. Then you have to broaden that circle, and ask them all to share the information with all their own knowledge, and to function in the same way that social networks can.
Finally, we will have to communicate around his idea and his project, to make it known to all, so as to also find subscribers among perfect strangers, who will in turn become acquaintances or friends.
With the support of all
With elbow grease and a well-hung tongue, we will be able to develop its network to reach its goal. However, if it is not reached at the end of the defined period, the money is returned to those who had already participated. The collection should not take more than three months, in which case it is returned.
Important: you must have a bank account in France to receive the loan money. HelMobo can not work with foreign bank accounts.
How to talk about his project?
It should be detailed, but not worth entering into the technical and financial details of the business model. Not everyone is able to understand it and too detailed figures could have the opposite effect of the one who sought to convince as many people as possible within the time limit to raise the money. It is still advisable to list its biggest upcoming expenses once the project is launched, to show its viability in relation to revenue (if there is any).