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What alternatives to credits for SMEs and the self-employed?

Do you manage an SME or are you self-employed? Are you looking for more cash for your business? If credit to the self-employed is certainly a solution, what are the other alternatives? A quick overview.

 

Advantages and disadvantages of SME credit

business credit

Credit to SMEs remains the most practical and widespread solution for obtaining liquidity for your business . While it is generally possible to obtain a loan with good conditions from banks or financial institutions (see the solutions offered by Multicredit for SMEs and self-employed), credit still involves certain restrictions:

  • It is not always possible to obtain a loan depending on the situation of your company (too recent company, budget problems, etc.).
  • If it solves an immediate liquidity problem, it does not allow long-term savings on the budget: a loan will always have to be repaid.

 

Other solutions

business loan

Whether it is to make up for an immediate lack of liquidity, or to improve its “cash flow” in the long term, there are several solutions that are sometimes little known to SMEs and the self-employed. We offer some of them here with explanations.

 

Rent guarantee

business loan

In the event that you have blocked a certain amount on a deposit account, it is possible to opt for a rental guarantee without bank deposit. This fulfills the same function as a standard rental guarantee, but without deposit, and for a modest annual cost. Once the new deposit-free guarantee takes effect, you can then freely recover the blocked money. You can easily get a no-obligation quote from our partner Fine Bank.

 

Leasing

Leasing

SME leasing, less known than private leasing, allows you to finance any capital goods for your professional activity without own funds. Machines, tools, vehicles. SME leasing makes it easy to renew equipment for a controlled cost. For more information, Pro-leasing will allow you to estimate the possibilities of SME leasing and to make a free request.

 

Credit and factoring insurance

Credit and factoring insurance

These two complementary products make it easy to transform unpaid receivables into cash. This involves entrusting the management of unpaid receivables to a factor who then advances the amount owed to you while helping you manage the unpaid debts. If for example you have billed your services to a company, and it takes a long time to pay its due, you can then:

  • Ask the factor to promptly pay 90% of the amount of the unpaid invoice. The remaining 10% will be recovered upon payment of the claim.
  • Get help with debt collection, and even delegate it to the insurer / factor.

Factoring is an ideal solution for companies that deal with other companies (B2B), and that find it difficult to get paid. For more information, our partner Fine Bank is also active in insurance solutions for companies.