Has the containment associated with Covid-19 reduced or even dried up your company's cash flow? Whether your activity gradually restarts or remains at a standstill, are you sure that you have activated all of the existing levers? Here are some of the essential steps to get your business finances afloat. Cash is the nerve of war!
Emergency measures
1. Solidarity fund. Open until May 31, it provides financial assistance to autoentrepreneurs, very small businesses, SMEs and liberal professions who have stopped their activity. It releases 1,500 euros per month per company, plus an additional 5,000 euros under certain conditions.
2. Loans. The State guaranteed loan (PGE): this is a bank loan guaranteed at 70% or 90%. The request is made to its main bank with a response 5 to 10 days later. Accessible until December 31, 2020, it displays a rate of 0.25% or 0.50%. No reimbursement planned for the first year, with a maximum duration of 5 years.
The rebound loan: issued by Bpifrance to finance cash requirements, this loan at preferential rate allows borrowing, depending on the region, from 10,000 to 300,000 euros. "Its lifespan is 7 years with a grace period of 2 years," says Michel Tudel, president of Absoluce, a network of chartered accountants.
3. Contributions and taxes. The State has decided to extend until late May the delay in the payment of social and fiscal contributions already recorded in March and April. This applies to very small businesses, the self-employed and self-employed people. The charges of small shops and businesses with less than 10 employees closed by administrative decision will be canceled and not simply postponed.
Traditional measures
4. Collection of invoices. Please note that late payments may have resulted in the sudden cessation of many activities. To avoid cascading damage, come forward. Certain delays by your customers can be attributed to the disorganization due to containment. Also vigilance and regular reminders are required.
"When new invoices are issued, it will be possible to shorten the payment period," advises Michel Gire, vice-president of Walter France, a business advisory group.
The use of factoring is also an effective avenue. In return for a commission of 2 to 3% of its amount, a company pays you the invoice immediately and then takes charge of recovering the pending payment.
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"It is an appreciable time saver on the time of collection of the receipts", adds Pierre Dutaret, director of Libéo, invoice management platform.
5. Investment on credit. Have you purchased equipment shortly before containment? Did you know that it is possible to have it financed by leasing retrospectively? "This financing will thus make it possible to recover very useful liquidity during the post-containment period", suggests Alexandre Prot, founder of Qonto, a neobank dedicated to VSEs.
"Also, don't forget to renegotiate the current loan rates downward and ask for a larger overdraft authorization", adds Bernard Cohen-Hadad, president of the CPME Paris-IDF.
6. Rents. If you benefit from the Solidarity Fund, you have the option of deferring the payment of rents and water and electricity bills. The State has signed agreements with large private donors to postpone the payment of rents until the end of the state of health emergency. Are you at the end of the lease? Suggest a downward rent revision.
7. Stock. No need to buy too many supplies, nor to replenish a plethora of stock. "These purchases are expensive and the activity is likely to restart slowly," anticipates Charles-René Tandé, president of the order of Chartered Accountants.
Useful contacts: www.service-public.fr; www.tresor.economie.gouv.fr; www.bpifrance.fr; www.cpme.fr; www.agicap.fr (cash management assistance software and community of SME managers); www.qonto.eu; www.libeo.io