In&Fi Crédits Pro notes a drop of almost 70% in cash financing for VSEs/SMEs

A network of professional credit brokers, In&Fi Crédits Pro boasts extensive expertise in financing VSEs and SMEs. Attentive to the challenges facing businesses during this time of crisis, Pascal Beuvelet, President of the network, provides an update on the decline in cash financing for VSEs and SMEs.

By analyzing the Banque de France report on the financing of VSEs/SMEs (less than two million euros in turnover) in the third quarter of 3, Pascal Beuvelet, President of In&Fi Crédits Pro, noted a sudden collapse in the financing of their cash flow.

According to this report, the total outstanding amount of 202 billion euros in financing for VSEs/SMEs in the third quarter of 3 was divided into 2011% for cash, 10% for investment and 60% for real estate.
Outstanding credit lines to VSEs/SMEs are stable in terms of overall volumes and their distribution, but the volume of new credits distributed by banks fell by €900 million, from €16.4 billion in the second quarter to €2 billion in the third quarter. At the same time, the amount of new credits allocated to investment and real estate remained stable at €15.5 billion.

According to Pascal Beuvelet, "this means that the €900 million drop was entirely borne by cash loans, which fell from €2,95 billion in the second quarter of 2011 to €2 billion in the third quarter. This represents a 3% drop in cash financing for VSEs/SMEs."

POSSIBLE SOLUTIONS TO REBALANCE THE CASH FLOW OF VSE/SMES

On the ground, the situation is worrying because the majority of financing requests from VSEs/SMEs concern needs linked to cash flow gaps.
70% of SME/VSE managers surveyed by the CGPME (French Consumer Confederation of Professional Accountants) report feeling a tightening of this type of financing from their banks. The Higher Council of the Order of Chartered Accountants has reached the same conclusion and has entered into a banking partnership to promote access to credit for SME/VSEs for financing under €25.000.

According to Pascal Beuvelet, however, there are several ways out of this crisis. "Thanks to their financing expertise and in-depth financial analysis of each case, professional credit brokers are able to provide business leaders with effective financing solutions tailored to each case," he explains. "Thus, a lack of equity can be offset by numerous alternative financing schemes such as factoring, leasing, private equity, or even a leaseback operation for VSEs/SMEs with real estate assets."

> About In&Fi Crédits Pro:
Founded in 2009 by Pascal Beuvelet and launched under a brand license in 2010, In&Fi Crédits Pro is a credit brokerage firm for businesses. Its mission is to seek out the best possible financing from various banking institutions to present to its clients. It is part of the Global Franchise Crédit (GFC) group.
- Services - Financing of business creation, takeover of businesses and companies, fittings and works, equipment and vehicles (Rental with Purchase Option or Long-Term Rental) purchase of commercial and professional premises as well as cash loans in the form of factoring.