Subsidies as a source of financing for your company

Last modified:

Tuesday 7 September 2021

Subsidies are a potential source of financing for your company.

Although this source of financing is clearly more restrictive than capital, self-financing and credits, it must not be ruled out or underestimated.

A subsidy is generally:

  • Related to a specific object requiring financing
  • Limited to a percentage of the object to be financed
  • Released in the form of a financial cash flow (except if it is related to a tax calculation)
  • Provided after the expense in question is incurred, often in several instalments

The main advantages of subsidies (excluding exceptions or special terms) are that they:

  • do not lead to interest charges
  • do not require a return on investment
  • do not have to be repaid

unlike other sources of financing.

It is generally recommended not to base your financial plan, the profitability of your project and the evaluation of financing needs on receiving subsidies.

It is essential to be aware that, to claim a subsidy, you must submit a file before incurring any expenses that you want to be subsidised.

You can find an overview of all the subsidies available to Brussels entrepreneurs in the Subsidies section.

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