The Banker and the Loans

Going to your banker’s house with a professional credit application is never an easy exercise. Public authorities can also provide you with financial support, most often through subordinated loans. 

Do you have financing needs? Different types of short-term or long-term credits may be granted to you, either by credit institutions or by public institutions. For the loans and funding this is a very important matter now.

Types of credits

In long-term loans, the following are usually included:

  • The investment loan which makes it possible to finance the launch of a new company, the constitution of a stock, the purchase of machines or vehicles, the resumption of an existing business, etc.
  • Leasing, which refers to a long-term lease (computer tools, cars, etc.)?

Short-term credits include:

  • the cash credit that meets the permanent needs in working capital
  • The discount credit which aims to cope with a lack of cash, resulting in payment delays granted to customers.
  • The guarantee credit by which a bank guarantees a company’s obligations towards third parties.

Your banker will only review your business loan application based on a credible business plan . It will take into account, on the one hand, your repayment capacity and, on the other hand, the guarantees offered.

Needless to remind you that the first interview with your banker is of a You will need to convince him if you want to have a chance to get financing and have your accountant support him if necessary.

Public institutions responsible for supporting entrepreneurship can facilitate the process of obtaining a bank credit by intervening parallel to the credit institution. There are different subordinated loan formulas in each region. These loans are treated as quasi-equity.

The issue of collateral is often a tricky point in negotiating with a banker. It must limit its risk (and indirectly its volume of litigation) while you will be tempted to provide the least possible guarantees, especially on your private wealth. It will therefore be necessary to find an acceptable solution for both parties.

In this respect, the Regional Guarantee Funds play an important role since they grant, under certain conditions, the guarantees imposed on SMEs and the self-employed by credit institutions.

The real estate loan broker is an intermediary responsible for negotiating the best financing terms with the banks for the borrower. Since the 2000s, the profession has developed strongly, especially on the internet. But what are the real benefits of going through a broker? 

Explanations and advice

The real estate broker is an intermediary in banking operations and payment services (IOBSP). The broker may also be competent in matters of consumer credit, repurchase or pooling of credits, or in the field of credit insurance.

Since the 2000s, the profession has developed strongly, with the emergence of brands present both online and also having a network of franchised agencies. This is the model chosen by the main brokers even if, in detail, it persists some subtleties. Thus, it allows, if the customer wishes, to do without agencies. Instead, he can only use their remote platforms. Other brokers have certainly developed online simulators, but the finalization of the case requires meeting a broker. Finally, there is also a multitude of independent actors for whom physical appointments remain unavoidable.