Banks are increasingly reluctant to give professional credit. Since the beginning of the financial crisis, all sectors seem affected by this situation and even more individual businesses (craftsmen, traders, professionals) as well as small companies .
We also see many online brokers who today refuse to support requests from entrepreneurs who do not have at least 20% contribution.
Form the application file with the bank
The constitution of a professional credit file takes a lot of time, because the bank asks for many documents.
List of documents to provide
- 3 last balance sheets or estimated over 3 years if it is a creation with cash flow plan.
- Statutes if it is a company created or draft statutes if society in creation
- Two-sided ID card of the leader
- Proof of residence of less than six months
- KBIS excerpt of less than three months for incorporated companies
- Details of the request with presentation of the situation (purpose of financing, current situation, commercial objectives of the company …)
- Latest bank statements (from 3 to 6 months following the banks)
- Manager’s financial situation (personal account statements, amortization tables for outstanding loans, last tax statement, current investment statements)
- Compromise or promise to sell (if it is a real estate acquisition).
Which address ?
The first reflex would obviously be to answer: “to your bank”. Even if the latter is to be effectively consulted, experience proves that it is necessary to put it in competition, either because you may face a refusal or because the proposed conditions are unsatisfactory.
You can also consult the brokers, present on the Internet, provided they have a local physical relay. Only a bank near your home or business may be interested in your file. We advise you to contact several to play the competition.
Remember to ask these few questions before granting your trust.
- How long has the broker been in?
- Is he registered with ORIAS?
- Is it up to date with its professional liability insurance and financial guarantee contributions?
- What is the amount of his fees?
What is the repayment period?
The duration varies from one bank to another and depends on the nature of the request. These are generally short- and medium-term loans of up to 7 years or even 10 years for the longest periods.
Can we get funding without contribution?
The question is very current because the demands of professional credit without contribution are more and more numerous. If the demand is for an existing company with excellent balance sheets, it is safe to say that the funding will not be a problem. If on the other hand, the request concerns a company in difficulty , it will obviously be more complicated.
Be aware, however, that for a temporary cash flow problem or for a single deficit year, the bank’s commitment department will be able to establish a sufficiently broad appreciation of the situation.
If the goal is to create a company , you have to admit that it will be very difficult to find funding without a significant contribution. Some brokers refuse to take care of customers who do not have a minimum capital.
The average contribution required by the banks is of the order of 20% , but again everything will depend on the situation of the company, the amount of loan requested and the quality of the project (imply its potential for profitability) .
With or without input, know that if you have a real professional know-how in your field of activity and even better if you have already practiced as a business manager , your experience will weigh a lot in the balance.
What can I finance?
The needs covered are varied and may concern:
- The purchase of equipmentThe purchase of real estate (often professional premises)
- Inventory purchase
- A capital increase
- The acquisition of capital goods
- The purchase of transport vehicles
- A cash need
In a general way everything that is financed by the company. It should be noted that the cash requirements are more generally the subject of a demand for overdraft authorization. To cover this need, it is simpler to go to one’s own bank, because an outside establishment will never accept to intervene in a company in difficulty.