Lots of possibilities to finance your box!

After inception, there are many ways to finance your company and find the funds you need to grow your business. A brief overview of financing techniques.

financing techniques

Operating Credit: or Operating Credit,

Short term (normally 1 year), it allows a company to meet a specific need related to a cash flow problem, usually given to companies by banks or suppliers.


Little practiced formula as it is heavy and not very flexible. This operation is used by the banker when the payment terms of the customer are very long. Therefore, the entrepreneur cannot develop his business. For this, the bank lends him the amount of trade bills discounted, in which future income is deducted till these bills are cleared.

the daily law

A form of credit that can replace rebates and has the advantage of being faster and more flexible. The only downside is that banks often do not agree to this type of loan (especially if no notification has been given to the borrowers). This financing operation enables the entrepreneur to transfer some part of his customer account to his banker. In return, he receives a revolving credit line.


A recovery operation that allows the entrepreneur to guarantee against the bankruptcy of customers. Factoring involves purchasing a trade receivable by making payments directly to the company. The collection of the receivable item can be completed if the contractor asks the factor to pay him the amount of the specified receivable immediately. This operation is still quite expensive, but can offer factor packages to new companies.

cash facility

The bank authorizes the company to post a debit account for a short period of time. This makes it possible to cover the occasional gap between operating expenses and revenues. It can be renewed if the banker agrees.


This allows the company to meet its working capital requirement when it is insufficient. This credit can extend for a few weeks or even a few months. Hence it is of longer duration as compared to overdraft facility. Please note: Company account cannot be debited for a very long period of time. Getting the bank to accept it is not always easy, whether the overdraft request will be successful or not depends on the relationship between the entrepreneur and his banker, the company’s status and guarantees. This form of loan has a higher interest rate than a debt-raising loan.

campaign credit

Targeted for seasonal activities, these credits make it possible to fill cash gaps due to the operating cycle. These credits are for a longer tenure of 7 to 9 months. They are generally related to large quantities. To benefit from this type of credit, you need to have a very precise cash flow plan, good financial health and present solid guarantees, as seasonal credit represents a real risk for the banker. In fact, the reimbursement of this credit is based on the company’s notional sales.

Bank loan

Its purpose is to finance movable or immovable, medium or long term investments

Furniture Leasing*

It is used to finance investment in furniture or lease, i.e. to allow the entrepreneur to acquire equipment. This, thanks to the rental operation (up to a minimum of €40,000 excluding VAT). The rent that the company pays for it is deducted from its profits. The rental period corresponds to the period of use of the equipment. Once the rental period is over, the company can opt to purchase the good material.

economic lease

An operation that belongs to heavily indebted companies, yet maintains high profitability. This allows the company to use the new production goods but without purchasing them. This saves him from getting into debt for a long time.

real estate leasing*

Loans of up to a minimum of €200,000 to finance real estate reserved for commercial use. It should be noted that OSEO Leasing (a subsidiary of BPFrance) finances the entire real estate investment (together with assistance from the local authorities). Lease period from 8 to 15 years.

Partner’s Current Account*

It is a loan taken from partners on which interest may accrue, This funding source technique is used to meet temporary cash requirements. don’t trust the word “current account” which is being misused. It is defined as the social debt of the partner towards the company. This loan is repayable but it is also paid off. For companies, the Ally current account represents a fairly affordable method of financing. It can take the place of other financing methods. The account includes both the amount owed by the company to the partner, the amount it temporarily transfers (salary, payment of invoices, etc.), and the amount released by the partner to help the coffers of the company. This claim is not subject to social risk like capital contribution and its terms

OSEO Systems, a subsidiary of bpifrance

Business Start-up Loan

It is used for companies that need funding to develop their business, regardless of their field of activity or their size. This loan should be accompanied by a bank loan of at least an equal amount. This operation allows the entrepreneur to finance the purchase of buildings or land, new construction, fitting out or modernization of premises, transfer of activity or business acquisitions.

development contract

It is for companies that want to make real estate or physical investment, have non-material expenses and are more than 3 years old. This is a loan whose amount is between 40,000 to 400,000 €. This is within the limits of equity and quasi-equity of the company. It does not require personal guarantee and extends up to 6 years (with a moratorium of up to 1 year from reimbursement). This development should be linked to a bank loan of an amount equal to at least double the amount of the contract.

participatory development agreement

Raising equity to finance intangible expenses and investments. This is subordinate bank financing. Its rate of return (fixed or variable, as desired) is determined according to the bank’s risk appetite. This contract should be linked with bank loan for 2 to 1 equity, otherwise, as equity intervention for 1 to 1 equity.

go further

To collect receivables for receivables relating to orders placed on institutions. The receipts are transferred to OSEO, a subsidiary of bpifrance, which allows the company to benefit from the corresponding advances. This, for a renewable period of one year. This operation is targeted at companies with long payment terms. It is used exclusively for contracts with public or private prime contractors.

Participatory Development Loan “Local Authority”

The purpose of this loan is to finance the development or expansion of the activity and which is above all investments of an intangible nature. The amount borrowed ranges from €15,000 to €100,000 (without exceeding the sum of the company’s equity and quasi-equity). Companies that are more than 3 years old and whose activity is located in the area of ​​local community intervention can use this loan. The tenure of this loan on the same investment schedule is minimum 4 years and maximum 7 years. The entrepreneur benefits from deferred capital amortization of 2 years.

New Guarantee Fund to support the cash flow of SMEs and VSEs of the National Pact for Growth, Competitiveness and Employment.

It aims to support the cash flow of SMEs and VSEs by allowing the issuance of over 500 million Euros in bank loans. This exclusive guarantee fund now allows OSEO to guarantee cash loans given by banks to SMEs and VSEs. The system deals with loans from 2 to 7 years, the amount of which can be up to a maximum of 3 million Euros per company. This applies to all SMEs and VSEs, regardless of their date of creation, provided they are not in structural difficulty according to European law. To avail this, SMEs and VSEs can directly visit their normal bank branches.

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