When looking at working capital financing solutions, French companies have a broad range of options. Cashflow can come either from banking institutions (through credit facilities or loans), from suppliers (through extended payment terms) or from factors. The company can also opt for self-financing solutions such as equity (capital increase) or debt (shareholders’ loan).
Among the range of ‘external’ funding alternatives available, most generate significant financial expenses (payment of fees and interests, providing guarantees). Their availability is subject to the company’s financial situation. Financing solutions increase as the company becomes healthier and more profitable.
