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Financement non dilutif, quel choix stratégique ?

Financement non dilutifs : dette vs subvention

Debt vs Grants – What’s the Best Move for Your Growth?

As a startup founder, you’re constantly looking for ways to fund your growth without giving up equity. The Non-dilutive funding is a highly attractive option, allowing you to keep control of your company while securing the cash you need. The two main forms of non-dilutive financing? Grants and Grants. But which one fits your situation best? Let’s break down the pros and cons of each.​

At Flag, we’ve been helping innovative startups and SMEs claim these credits for over 10 years. And believe us, it’s money you don’t want to leave on the table..

Grants: Free Money, But with Strings Attached

The Grants are often seen as the holy grail: money you don’t have to repay. But the reality is a bit more complex. Cependant, la réalité est plus nuancée.

  • Advantages of Grants:
  • No repayment – the funds are non-repayable, easing financial pressure.
  • Increased credibility – winning a grant boosts your profile with investors and partners.
  • Drawbacks of Grants:
  • Competitive and time-consuming – applications go through rigorous selection processes and require strong, well-prepared dossiers.
  • Tranche-based disbursement – funds are often released in stages, tied to milestone validations or expense justifications.
  • Restricted use – grants usually come with specific project constraints, reducing flexibility.
  • Impact on CIR/CII – grants may reduce the value of your Research or Innovation Tax Credit claims in France (CIR or CII), lowering your fiscal benefit.

Debt: Flexible Cash With Obligations

The Debt financing involves borrowing money that you’ll repay over time—often with interest. Unlike grants, loans offer more flexibility in use but require long-term financial commitment.​

  • Advantages of Debt:
  • Lump-sum disbursement – funds are generally transferred in full, offering immediate liquidity.
  • Freedom of use – you can allocate funds according to your evolving needs, without detailed justification.
  • Deferred repayment – certain loans (like those from Bpifrance) offer 2–3 years of grace period before repayments start.
  • No impact on CIR/CII – loans do not reduce your eligibility for R&D or innovation tax credits.
  • Drawbacks of Debt:
  • Mandatory repayment – principal and interest must be paid, creating long-term financial pressure.
  • Contractual obligations – loans may include restrictive covenants or personal guarantees, which increase your exposure if things go south.

Debt vs Grant: Which Strategy Is Right for You?

  • The answer depends on several factors specific to your startup:
  • Project alignment – if your project ticks the boxes for a targeted grant, go for it.
  • Cashflow urgency – if you need cash now and in full, debt may be more appropriate.
  • Repayment capacity – assess your ability to generate revenue and meet loan terms.
  • Risk tolerance – debt comes with repayment obligations; grants don’t, but are harder to obtain.
  • Consider a Hybrid Strategy
  • Leverage Debt After Fundraising
  • If you’ve recently closed a funding round, your improved financial position could boost your ability to secure loans—especially from Bpifrance or partner banks. It’s a great way to strengthen your cash position without further dilution.
  • Apply for Grants in Parallel
  • While working on debt financing, you can also apply for targeted grants—R&D projects, innovation, international expansion. The timelines are longer, but the payoffs are significant.
  • Don’t Overlook CIR & CII
  • These French tax credits are a great complement to your non-dilutive strategy: CIR: Up to 30% of eligible R&D costs, capped at €100M. CII: Up to 20% of product innovation costs.

Work With Flag.Finance to Maximize Your Non-Dilutive Strategy

At Flag.financewe help ambitious startups build and secure the most effective non-dilutive funding roadmap possible..

  • We support you in:
  • Identifying the right mix of funding sources at each stage of growth
  • Mapping out grants, subsidies, and public support
  • Preparing solid, audit-proof applications
  • Accessing Bpifrance and regional funding channels
  • Maximizing results—while you stay focused on running your business

Want to scale without dilution?
Book a free diagnostic with us today and we’ll help you unlock the most strategic opportunities.

Resources You May Need:

Conclusion: Don’t Just Raise, Structure Your Funding

The Non-dilutive funding is a powerful tool to boost your growth without giving up equity.
But each option—grant, debt, or tax credit—has its own rules, benefits, and traps. Whether you go for one or combine several: structure your approach and surround yourself with the right experts to make it work.

At Flag.financewe’re here to guide you every step of the way.
You move forward. We clear the path.

We help you build the optimal financial roadmap to scale your startup:

  • Equity fundraising
  • Non-dilutive financing strategies
  • Innovation tax optimization
  • Part-time CFO services

Not sure where to start? Reach out, we’ll walk you through it.

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