Professional credit: how to go about obtaining it?

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Access to bank financing is becoming more complex and companies sometimes struggle to find professional credit . However, it is often necessary to take on debt to develop your business or to cover short-term cash flow needs. Here are some organizational tips to maximize your chances of obtaining the loan essential to your projects.

1 - What is a professional loan?
This type of loan only concerns professional activities , whether carried out in a company or as a sole proprietorship.

1.1 - Professional credit: definition
This credit is therefore opposed to financing granted to individuals for housing or for consumption in order to finance a real estate project or the purchase of a vehicle for example. For a company, the credit can concern equipment , investment, cash , etc. Professional financing always includes a nominal amount, an interest rate, a duration and provisions relating to repayment italy phone number list The in fine loan is not amortizable. Indeed, the capital is repaid in full at the end of the contract. In the case of amortizable credit, on the contrary, each payment includes interest and capital.




1.2 - Situations that lead a company to seek professional credit
As soon as the entrepreneur needs cash and does not have more self-financing or equity, recourse to debt is necessary . This is the case from the creation of the company in order to finance the first investments and cover the initial working capital requirement (WCR). The manager who wishes to acquire the premises where he carries out his activity also generally needs a professional loan.

The takeover of an existing company or a business also requires the search for financing to supplement self-financing. The same applies to the development of an activity which requires the purchase of stocks or investments in equipment, software, etc. to increase production capacity.