For TPE, no alternative but to turn to a bank to finance their need for short-term cash. But bankers prefer to finance investment rather than the operating cycle. BPIFrance opened a guarantee fund to help finance small businesses affected by the crisis. Take the opportunity to take stock of current formulas short-term bank loans that cover the need for working capital.
Since 1 January 2015, BPIFrance, whose role is to support the business credit has opened a guarantee fund of 500 millon euros.10000 Small businesses will benefit from the guarantee of that public body, which will guarantee for them, with the private bank lending up to 50 000 euros per case.This is good news for small businesses and craft businesses in particular have seen their cash battered by the economic crisis that has hit particularly hard in 2014 ... with the result that the bankers have become particularly cautious.
Since 1 January 2015, BPIFrance, whose role is to support the business credit has opened a guarantee fund of 500 millon euros.10000 Small businesses will benefit from the guarantee of that public body, which will guarantee for them, with the private bank lending up to 50 000 euros per case.This is good news for small businesses and craft businesses in particular have seen their cash battered by the economic crisis that has hit particularly hard in 2014 ... with the result that the bankers have become particularly cautious.
According to data from the Observatory of Credit, once a company had difficulties financing its need for short-term cash, if the bankers are not eager to fly to the rescue. Is that to the bank, finance an investment in durable goods (equipment, buildings) is less risky than financing the daily expenses of a company that suffers.
You may be among those whose business will benefit from the public initiative in favor of small business credit, mounting a specific bank loan documents and motivated.
We remind you now short-term credit products offered by the banks to finance current TPE cash requirements. Your professional financial counselor will be the spokesperson delegated by BPIFrance to commit to be available to your business.
If you have kept your relationship with him, so much the better, as it plays the role of filter.
Cash Loans:
- overdraft facilities
- authorized overdrafts
- Commercial paper / seasonal credit?
- tacit agreements
- unauthorized overdrafts
These five forms of credit, which all lead your business to evolve with a negative balance in his bank account, the first 3 are acceptable. As for tacit agreements and unauthorized overdrafts, they are best avoided. The last two formulas are the result of an overdraft that has not been negotiated with the banker. Use the money out of your bank of any explicit agreement framework will inevitably cost more than if the need was anticipated and that you have the agreement signed banker on the amount, duration and cost of the overdraft.
Worse, in the case of tacit and unauthorized overdrafts agreements, banker "can close the tap" at will, as he promised you anything.
The untraded overdrafts are always a sign of a lack of foresight of the entrepreneur and sometimes disinterest banker for a folder. In all cases, it is the company that loses.