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.
The constitution of a professional credit file takes a lot of time, because the bank asks for many documents.
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.
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.
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.
The needs covered are varied and may concern:
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.