The repurchase of credit is a financing solution allowing the borrower to set up a new project, or quite simply to rebalance his budget. If such a financial transaction is relatively common for individuals, how is it structured for a professional, and more particularly for a craftsman? We will tell you all about the repurchase of artisanal credit and the documents to attach to your file!
The repurchase of credit in brief
Whether it’s an individual or a company, buying back credit is based on the same principle. Otherwise called credit consolidation or debt restructuring, credit repurchase is a financing operation during which the bank merges several loans (two minimum). There remains only one loan, at unique rates and monthly payments. The repayment of this loan is made over a longer period, which allows the professional – the craftsman, in this case – to reduce his debt ratio. He can then put his personal finances afloat or, potentially, consider a new credit which will be grafted on the redemption.
Note: what type of credit grouping can the bank offer?
A bank will offer you either a buyout of consumer credit (it only concerns consumer loans), or a buyout of mortgage (it concerns consumer credit and mortgage at the same time). The solution is therefore global, but you still have to be eligible!
Artisans: the repurchase of credit subject to strict conditions
As a craftsman, you no doubt know that establishing good relationships with the bank is not always easy, especially when it comes to grouping loans. In such a case, this financial solution is not necessarily viewed favorably by credit institutions. And for good reason! The latter often impose long-term financial stability. However, the craftsmen belong to a socio-professional category for which the returns of money are uncertain, like a merchant or even a liberal professional. Result of the races, the conditions of eligibility for the repurchase of artisanal credit are stricter than for a borrower.
In addition, and this is probably what must be remembered, a debt restructuring for a craftsman will exclusively concern loans for personal use. No professional credit will be accepted by the bank. Similarly, additional cash (new loan) can only be used for personal use. In no case may it serves as a contribution to the benefit of the company.
To hope to see his debts bought back from the bank, a craftsman must be able to justify:
- a minimum of 3 years of service in his activity at the time of the buyout request;
- an increase or stability in turnover over the past 3 years (company balance sheets);
- equity, that is to say everything the company owns except its debts (proof of the financial strength of a company).
An artisan credit repurchase file must also include, among other things:
- the extract of the company (to justify registration in the commercial register and prove the legal existence of the company);
- a photocopy of the identity card of the entrepreneur;
- a document presenting the company;
- amortization tables for consumer loans and outstanding home loans;
- a photocopy of the applicant’s rental lease or title deed;
- proof of address.
Artisan credit buy-back: how to get the best rate?
As with conventional credit, a buyout of artisanal credit can be obtained at advantageous rates, as long as the entrepreneur uses strategy. The most convincing method remains the use of simulation tools. You can find them on almost every online bank. By carrying out a simulation, the craftsman will have a better idea of the cost of a potential regrouping, as well as of the new monthly payments which would be his. And above all, he can compare the offers between them by observing the rate charged by each bank.
Note: at what rate to trust?
Always at TAEG! The annual percentage rate is an essential element of comparison. It includes all the costs of buying back credit (nominal rate, cost of any insurance, etc.) and represents its total cost.Any borrower, including a craftsperson, can also request the services of a credit repurchase broker. Not only can this professional help the craftsmen to tie up their file well, but in addition, he can make them benefit from preferential rates since he is in direct contact with banks and credit organizations.
Finally, the repayment tenure is an element not to be overlooked. The more the craftsman pays off his debt restructuring over a long period, the more this solution will cost him in the end. Why? Simply because the consolidation rate will be higher.
For a tailor-made financing solution, have the reflex! For a buyout of artisanal credit or any other loan formula, an evaluation of your repayment capacity is systematically carried out. And since we only distribute one type of loan – the personal loan at a fixed rate – you have the assurance of constant monthly payments for the duration of your loan. Go to the top of the page for a simulation!