Business recovery with professional credit | Business loan

Important elements for the recovery of activity

Important elements for the recovery of activity

The recovery of activity is a real entrepreneurial adventure that completely involves the future leader, both personally and professionally. It is important to have a very clear idea of ​​the business to take over. Indeed, many criteria must be defined before starting to look for a company to resume: the type of activity, the size of the company, its location and especially the budget.

The financing of the recovery of activity is often done by the combination of several sources of financing: personal contribution, seller’s loan but especially professional loan. Banks usually require a minimum of 30% of the total funding, which can be a proof of your determination and motivation. Indeed the financing capped at 70% by loan allows the banks to cover themselves in case of problem.

Some selection criteria for the bank

Some selection criteria for the bank

  • Comprehensive diagnosis of the company

When taking over an activity, it is essential to carry out a complete diagnosis of the company. We need to surround ourselves with experts capable of deciphering accounting plans and identifying certain problems. The more the company is known in detail, the less surprises will come.

  • Business plan

The business plan allows the bank to understand the direction in which the entrepreneur wants to take the business. Does he just want to make some changes by staying on the same model or completely change the operation of it? It will be an indispensable tool for the bank to make its decision.

  • Buyer’s capacity

It’s not just a figure for the bank. Indeed, determining the entrepreneur’s ability to lead the company he wants to take over is essential. A company and its employees may feel completely overwhelmed by new governance and the smooth running of the business may suffer.

Business recovery compared to start-ups

Business recovery compared to start-ups

During a business recovery, the entrepreneur inherits the company culture and the history of the company. It also inherits the customer base which allows the company to be directly operational, unlike the creation of a business that requires a startup time. The recovery of activity also makes it possible to start with bigger companies than during a creation. Nevertheless, it has a higher cost since in addition to the company one also benefits from all the equipment and the manpower.

Why call a broker?

In general, business recovery is less risky than starting a business given existing resources. Nevertheless, banking institutions will be very attentive to the file provided and nothing should be left to chance. The experts of Lancent accompany you and guide you throughout your business recovery project. Thanks to its network, Lancent offers you the best banking partner in line with your project.