An overview of some techniques used currently.

Loan Restructuring global franchise with a return of capital

We can implement the refinancing of existing debt to the tune of 70% of real estate collateral made, with a grace period of repayment of principal up to 15 years. This period is followed by a period of depreciation of capital is also a term which may extend up to 15 years (amounts: 300 k € to € 10 million).

Current Account Mortgage

On mortgage guarantees we can generate cash that can be used to make a contribution to a company capital or c / c, or to settle tax debts, social etc. .. (From: 200 k €)

Cash mobilization Heritage

In the case of a fixed assets, even in the absence of income or low income, we can set up a mortgage up to 70% of the appraised value of real property. The fund placed on a secure medium, will be divided: one part will be pledged to the bank, the other party will be sampled monthly, including the maturity of the loan plus one additional payment to increase the resources available.

Loan ultimately

The loan is detrimental in depreciable property income tax, because interest expense is steadily declining – so tax increases – and as far as reimbursement. The interest of the ultimate redemption is further proof, to optimize both the tax on property income and tax savings (life insurance). We can refinance the loan amortization of your customers and turning them into loans in fine.

Residual Value

We can in some cases postpone the amortization of the loan by introducing a residual value at end of loan up to 50% of the nominal loan, which will allow your customers to finance rental housing with rents reduced or reducing the maximum personal contribution.

Financial Partnership

A further contribution of capital by an outside investor may be decisive for the establishment of funding (corporate, real estate ..). The compensation sought by the investor will be high (15% to 25% the following year risk) but the average cost (ie, including Europe’s cost of credit on a pro-rata) is reasonable and in any case well below the project profitability.

The use of convertible bonds (CBs) or equity loan avoids a direct equity investment, through payment of a premium. Investors are following the project’s size and sector, individual investors dormant (TEPA), or active managers, private financial companies, institutional investors and banking, foreign pension funds.


The right of redemption or repurchase agreement (Article 1659 and the Civil Code) can respond to specific situations (difficult to borrow etc. ..) by mobilizing up to 50% of property sold, with the option for the seller to resume at any time upon the return of the main prize (plus costs) for a period not exceeding the stipulated duration (up to 5 years).

This technique and other techniques for porting financial, can be implemented for your business (only) with the aforementioned investors.

Redemption of real estate companies with deficits in the SI

Investors buy up all the above companies with tax losses.

Redemption of real estate companies to SI

We can set up the financing of the purchase of SA, SARL or SCI SI buildings with no external guarantee. Debt Redemption

All companies and banks have non-performing loans are fully provisioned. Blocks of claims of this nature can be taken for 1 € with handover to the transferor of 50% of amounts recovered (minimum: 2 M €)

Equity loan

We can develop under certain conditions a loan to cover the funding needs for the development of the firm (tangible and intangible investments, working capital etc. ..), up to 7 years, with a grace period of depreciation capital of 2 years (150 k € 10 M €).

Leaseback (Sublease)

This technique can generate cash for the company on capital assets as assets on the balance sheet (desks, walls, commercial or industrial equipment, machinery etc. ..) taking advantage of favorable tax provisions spreading of surplus value ( property) over 15 years (from about $ 1 million €; valid: until 31/12/2010).

Temporary assignment of usufruct

The temporary assignment of usufruct to a company (IR or IS) reduces the ISF of the transferor, to benefit from the BIC on income and provides cash that can be placed on a life insurance carrier. We can implement this type of financing from € 1 million.

Cash for property investment

The particularly low relative to rental yields provide current, by leveraging on rental properties, generate additional cash, which will be used for new rental investment. The ability of the borrower is then immediately increased. If the borrower repeats this kind of operation, it is easy to understand that it can increase its assets more quickly.


The analysis of our professionals on interest rates and currencies ..

Short rates

The massive capital injection by governments, through public deficits, enabled the developed countries out of depression the most violent since the war.

The downward revision in global growth, the accumulation of public deficits, the debt crisis of the Greek, who pointed out the weaknesses in economic governance of the euro zone, have exerted downward pressure on Euro / dollar, which boosted growth in Europe and particularly in Germany. But there is now an extension of the economic crisis in currency markets, every major area seeking to use its currency to defend its interests.

After getting closer for a few quarters of the purchasing power parity (1 = € 1,10 / $ 1.20) and during the introduction (1 € = 1.1680 USD), Euro known a strong rebound following the arbitrage market in its favor against the currencies of major industrialized countries (USA, Great Britain) have announced new measures “Unconventional” support the economy through purchases by the central banks of securities public debt, which amounts to the monetary injection, and following the intervention of Japan and major emerging countries (China, Brazil, India) to defend the parity of their currency to the influx of speculative capital and protect their exports . Since 2007 until today, major currencies have in fact diverged about 40%, currencies have diverged most are on the rise, yen, and falling, the pound and the dollar, the euro (and the Yuan ..) remaining relatively stable. This confirms that, although in the absence of a genuine European policy rates, the Euro is mainly an adjustment variable, its term, relatively stable within a basket of major currencies, reflects fairly well objectives of the ECB. To date: 1 USD = 6.55957 F: $ 1.37 = 4.79 F, level widely experienced in the past.

Cash lent heavily to banks by central banks have not done enough to leave the money market, which operates much of the ECB at the counter and not enough between banks, and also remain mostly placed with the ECB. However, an improvement was recorded with the final allocation of the ECB in late September, the banks have limited their further applications to 60% of the amounts reimbursed. This capital and the cash does not generate inflation in the euro zone, due to weak demand and low production credits, apart from some speculation on assets (raw materials ..). In this context, the ECB should keep its key rate at the lowest up to and including 2011 (about 1%), as the Fed in the U.S. where the growth forecasts were revised downward. The spread EURO (= difference between the rate of the ECB and the rate of EURIBOR (average effective rate of bank funding), that is what banks pay on average to have access to the money market, income is TODAY “Today at about 0.40% (cons> 2.00% at the height of the crisis in November 2008, 0.20% / 0.30% before the crisis in Greece and 0.10% / 0.15% “normal” times), establishing a level of short rates at their lowest.

Long rates

All states are now faced with the alternative of taking credible steps to reduce debt, or go see their refinancing rates, starting with the weakest (Greece, Portugal, Spain, Ireland …), with the goal Return to the convergence criteria (Public Debt / GDP = 60% deficit / GDP = 3%). Remember that these are calculated to ensure stabilization% or a decrease of public debt, with a growing economy – excluding inflation – less than 3%. The U.S. may face the same problem to refinance the debts of some heavily indebted states (Illinois, California ..).

The European Financial Stability, now perpetuated to ensure funding for states of the euro zone, the ECB decision, like other central banks to use “unconventional measures” including by buying securities European government debt on the secondary market, thus acting as “lender of last resort”, the rigorous measures taken by most countries and, finally, progress on fiscal policy with the presentation of national budgets to the EU before they are adopted by parliaments, are partly reassured markets. Spain now takes on contracts to 4.143% at 10 years, Ireland at 6.459%, 11.547% in Greece (but 5% to the EU). However central banks including the ECB, will have to stop in a few months “unconventional measures”, including the buyback program intended to contain the level of long rates during the crisis.

Accordingly, after a long hard reflux rates due to fears about the recovery and the flight of investors to quality (the 10-year German Bund is now operating below 2.50%, the French 10 years not far from this level) must be expected, however, in the context of government deficits, an upward pressure on long rates in the euro zone. Borrowings at fixed rates are attractive, even for a few quarters for periods equal to or greater than 10 years. The floating-rate loans in CAPS, however, remain today the best way to finance professionals in the short and medium term, for their flexibility and given their current levels.

Recent values of the reference rates

1 / Variable rate: Euribor 3 months: 1.037

* Either to a margin of 1.50% rate: 2.537%

* For a margin of 2.50% rate: 3.537%

2 / Fixed Rates:

– TEC 10 (rate constant maturity 10 years): 2.765%

* Either to a margin of 1.50% rate: 4265%

* For a margin of 2.50% rate: 5,265%

– BUND 10 years: 2.436%

* Either to a margin of 1.50% rate: 3936%

* For a margin of 2.50% rate: 4,936%

These values and comments are indicative and not binding. Recent listings up to date RATE CAPS, on call.




An update on recent developments in the regulation of credit

Capital ratios of banks

Basel II: Since 1988 (Basel I) and 2004 (Basel II), banks must meet their loan ratio of solvency risk to capital “unchanged at 8% (Ratio” Cooke “and” McDonough “). To pay 100% of a business, they must have at least 8% capital, of which at least 4% in near capital and at least 2% of capital “hard” (shares + reserves result set). OECD states have a weighting of 0%, banks 20% and mortgages at 50%. The risks are divided into three categories: credit risk 75%, 20% operational risk and market risk 5%. But the credit risk is weighted according to the rating of the client (from 100% to 20% without a note if AAA ) where the higher lines of credit sensitive now.

Basel III (2010): Following the agreement reached by the Basel Committee on 12.9.2010, the ratio of the 2% capital “hard” Basel II will be more than doubled: it will be gradually increased to 4.5% from 2013 to 2015. To be added later this ratio from 2016 to 2018 of a capital cushion “hard” words “preservation” is 2.5%. A total of 7% of capital “hard”. If the capital adequacy of the bank, measured every three months by the national regulator, passes below the ratio of conservation, the regulator could force the bank restrictions on dividend payments and executive compensation. A second cushion “countercyclical” from 0% to 2.5% may be added at the discretion of the regulator.

Note that two other (new) ratios are under study: a) liquidity ratio (liquidity 1st 30 days: real assets convertible into cash / outflows in a crisis, liquidity 2 °> 1 year: Resources stable funding and actually available from 1 year / amount of funding needs> 1 year) and b) ratio of leverage (loan amount <33 x total assets). These ratios will be subject to testing until 2017.

A liquidity ratio is already established in advance to banks in France.

These regulations will more than triple the capital ratio “hard” required banks to finance SMEs and make it even more necessary the intervention of professionals like our company to support your customers.

Consumer Credit

Reform of Consumer Credit, transposing a European directive, is now adopted (No. 2010-737 of 1 July 2010) and decrees are being published.

The changes concern the requirement of a minimum return of capital in the credits called “revolving”, the maximum size of a consumer credit (75,000 €), the duty to inform the banker and the intermediate client’s ability to repay the credit, and free choice of insurance by the customer, especially for property loans.

Regarding this last point, the lender may not refuse to secure another insurance contract when the contract has a coverage level equal to the insurance group that offers. Any refusal must be substantiated. On the other hand, the lender can not change the conditions of the loan rate set in the original offer, that it is fixed or variable, in return for its acceptance as security for a contract of insurance other than the contract group insurance it offers. The insurer must inform the lender of non-payment by the borrower of its insurance premium or any substantial change in the insurance contract.

Moreover, the government commissioned a report on the creation of a positive file, like that of firms (FIBEN), where would be recorded by the Bank of France-in-progress’ credit borrowers and searchable by banks and credit agencies.

Bank files

Two main files, held by the BANK OF FRANCE, are commonly consulted by banks:

1 ° FCC (Central Index checks) that lists the incidents of individuals to pay FICP (national register of incidents of repayment of loans to individuals), prohibitions and procedures for bank debt. Any registration FICP is unacceptable in principle to obtain a loan. The law on consumer credit currently being examined at the National Assembly has the obligation for financial institutions to consult before any decision FICP credit and the principle of creating a file “positive” work in progress listing credit (as in the Business Sector: FIBEN). The ban was passed by the bank BANK OF FRANCE other institutions account holders through the FICOBA (file bank accounts managed by the IMB).

2 ° FIBEN (File banking companies) which lists the ratings of companies and their officers, incidents on bills, and bank overdrafts. Access is limited to listing the current and previous. We can assist your clients to improve their ratings or solutions.

The banking system does not always the right answer directly to SMEs and investors. So you can serve your customers, and thus better preservation, thanks to our timely intervention.

The financing may take the form of bank loans or private, financial guarantees, or involve joint action and a loans into equity through a capital partnership. Our team worked on several hundred cases and over 800 million €