If you are able to show him that your difficulties are temporary, your banker will be able to grant you a short-term loan to ensure the balance of your company’s cash flow. These credits are generally granted for a maximum period of one year with the possibility of renewal if the financial situation of the company allows it.
They can also be called into question by the banker within a very short time. We mainly distinguish:
The authorized overdraft facility and the authorized overdraft: they are to be negotiated with the banker, apply up to a certain amount and give rise to the payment of interest (agios). In case of overrun, you expose yourself to additional costs. The overdraft facility has an occasional character, unlike the authorized overdraft which extends over a defined period (generally one year renewable for example).
The bank may terminate the contract at any time provided it gives you the reasons and gives notice. In the event of abusive termination of an authorized overdraft, you can contact the banking mediator .
Its mission is to ensure that no company is left alone with its financing difficulties. It is a completely free and confidential procedure.
If your difficulty persists, you can enter the Codefi (Departmental Committee for the Examination of Business Financing Difficulties).
It is a local public structure which aims to welcome and guide companies with less than 400 employees who encounter financing problems. It intervenes upstream of the difficulties and can grant, under conditions, an audit allowing in particular to validate the hypotheses of recovery of the company or a loan allowing to finance its restructuring. It brings together all the State services and has a permanent office located in the general treasury.
To enter it, contact either the Permanent Secretary of the Codefi at the Departmental Directorate of Public Finances, or theCommissioner for Restructuring and Prevention of Business Difficulties (CRP) in your region.
If you have not found a solution with Credit Mediation and Codefi, two procedures for the amicable handling of business difficulties are available to you: the ad hoc mandate and the conciliation procedure with the President of the Commercial Court
procedures are available to companies experiencing difficulties that could compromise the continuity of their operations. They allow the manager to negotiate his debts under the aegis of either an ad hoc representative or a conciliator, appointed by the President of the commercial court. They are confidential.
Negotiate payment terms with your suppliers
You can negotiate payment terms with your suppliers by making them a proposal to spread your payments, which is called a “moratorium plan”. Naturally, you will have to accompany your request with elements guaranteeing that you will be able to keep your commitments.
If you come up against a refusal from your suppliers: two procedures for the amicable handling of business difficulties are available to you: the ad hoc mandate and the conciliation procedure with the President of the Commercial Court .
These procedures are available to companies experiencing difficulties that could compromise the continuity of their operations. They allow the manager to negotiate his debts under the aegis of either an ad hoc representative or a conciliator, appointed by the President of the commercial court. They are confidential.
You can also contact Business Mediation . It offers companies a free, fast and confidential mediation service. Any dispute related to the performance of a private law contract, including tacit, or a public order, may be the subject of a referral.