A self-employed worker can borrow from a private individual for a personal need or for the business, but must keep the two uses clearly apart, put the loan in writing, declare it above 5 000 € and check the authorisation of any platform approached.
Variable income and bank refusals for freelancers
A recently established tradesperson, consultant or liberal professional often has incomplete accounts and irregular income. Banks generally ask for two or three financial years of accounts, which pushes many self-employed people towards a loan granted by someone close to them.
Personal loan or loan earmarked for the business
Decide from the outset whether the money funds private life or the business. A loan to buy a van or stock must appear in the accounts, whereas a loan to cover a family house move remains a personal debt of the borrower.
Sole traders and companies follow different rules
In a company such as a SARL or SAS, a partner can advance funds through a shareholder current account governed by an agreement. For a sole trader, the loan is made to the individual personally; the page on the loan for micro-entrepreneurs covers that case.
Business assets and the guarantees lenders ask for
Since the reform of the sole trader status, personal assets are in principle separate from business assets. A private lender may nonetheless require a personal guarantee or a waiver, and the borrower should measure exactly what is at stake before signing anything.
A loan contract suited to a professional borrower
The contract states the purpose of the financing, the amount, the term, the rate and the repayment schedule, plus the SIRET business number if the funds serve the activity. A clause covering the loan if the business closes avoids a painful discussion later.
Tax declaration and accounting treatment
Formulaire 2062 (the French tax form for declaring loans) is required above 5 000 € when the loan is made to an individual. Interest on a business loan may get specific accounting treatment; an accountant or the tax office will confirm the rule.
Crowdlending for small businesses
Platforms authorised by the AMF, the French financial markets regulator, as crowdfunding service providers lend private savers' money to SMEs and shopkeepers. The page on regulated crowdfunding explains how to check that status before submitting an application.
Honour loans and business microcredit
The Initiative France and Réseau Entreprendre networks grant interest-free honour loans to business founders, and Adie finances self-employed people excluded from bank credit. These funds then make a bank loan easier to obtain, unlike an informal private loan.
Interest rates must stay below the legal ceiling
A private lender funding a self-employed person cannot charge more than the usury rate for the relevant loan category, published by the Banque de France. The thresholds differ depending on whether the credit goes to an individual or to a legal entity.
Scams aimed at people starting a business
Fake investors contact freelancers on LinkedIn or right after a business registration, promising fast funding in exchange for review or insurance fees. The guide to financing a business through private individuals lists the checks to run before any exchange.
Payment difficulties and the FICP register
A self-employed borrower combining a private loan with unpaid bank credit can be listed on the FICP, the Banque de France register of payment incidents, for up to five years, or up to seven years under debt relief measures. Warn the lender and renegotiate early.
The right advisers for an independent worker
The chamber of commerce and industry, the chamber of trades, an accountant or a business lawyer can review a loan project. The Banque de France also has a small business correspondent in every département to guide owners struggling to obtain financing.
Setting up a private loan when you work for yourself
- Define whether the funds serve personal or business needs, and the amount truly required according to a cash flow forecast.
- Choose the legal form of the financing: a loan to the individual, a shareholder current account or an authorised platform.
- Draft a loan contract stating the purpose, a rate below the usury threshold, the term and the repayment schedule.
- Receive the funds into the dedicated business bank account when the loan finances the business.
- File formulaire 2062 with the income tax return if the loan granted exceeds 5 000 €.
- Record the debt in the accounts and track repayments in the monthly cash flow table.
What private financing costs a self-employed worker
| Item | Order of magnitude | Note |
|---|---|---|
| Interest on the private loan | Free below the usury rate (indicative) | Different thresholds for individuals and businesses |
| Crowdlending platform commission | Depends on the platform (indicative) | Check the published fee schedule before applying |
| Registration of the contract | 125 € (indicative) | Fixed duty, optional step |
| Accountant or lawyer fees | Variable | Useful for a large amount |
| Fees demanded by a fake investor | Total loss | No genuine funder charges before paying out |
File to prepare before a self-employed borrower asks for money
- ID document and business registration extract or SIRENE notice
- Latest accounts or turnover declarations
- Twelve-month cash flow forecast
- Loan contract signed by both parties
- Bank details for the business or personal account
- Formulaire 2062 if the amount exceeds 5 000 €
- Proof of transfer and repayment table
Frequent mistakes made by self-employed borrowers
- Mixing money lent by a relative with business takings in the same account, which muddles both the accounts and the evidence.
- Accepting funding from an investor met on LinkedIn who demands review or insurance fees before releasing the money.
- Signing an unlimited personal guarantee for a private lender without measuring its consequences for the family's assets.
- Forgetting to plan what happens if the business closes down or goes into liquidation.
- Believing a platform is authorised because its website shows an official logo, without consulting the AMF lists.
Your questions on private loans for the self-employed
Can a relative lend money to my sole trader business?
Yes. The loan is then made to you as an individual, with a contract stating that it funds the business. It is declared on formulaire 2062 above 5 000 € and must appear in the accounts. An accountant will tell you how to record it.
How does a private loan differ from a shareholder current account?
A shareholder current account concerns a company: a partner advances funds to the SARL or SAS under an agreement. A private loan links two individuals. Tax rules and the treatment of interest differ, which is why professional advice is worthwhile.
Do crowdlending platforms lend to freelancers?
They mainly fund companies with an accounting track record, and more rarely self-employed people who have only just started. Before applying, check that the platform appears on the AMF list of authorised providers and read the fees and guarantees requested carefully.
Can an honour loan replace a loan from a private person?
An honour loan granted by a business support network is interest-free and personal to the founder. It does not cover every need, but it later reassures banks. It can therefore complement, or even replace, a family loan to launch the business.