Overcoming Cash Flow Issues: Mechanisms and Aids for Entrepreneurs

Every entrepreneur is one day or another confronted with various and varied difficulties. With regard to cash flow issues, there are several mechanisms, often ignored by the main stakeholders. They are, however, the impetus that the entrepreneur needs to bounce back or rebuild.

Of course, among the first possible help, that of the payment deadline. Cash flow problems often cause a race against time. Whether one-off or recurring, the time and money elements are often linked.

Prevention is better than cure

While it is not always possible to avoid certain setbacks, it is nevertheless possible to anticipate them. By detecting the difficulties as early as possible, it will be easier to overcome them or even circumvent them by going through a conciliation procedure, for example. The latter allows you to continue your activity without being deprived of your powers. Its objective is to lead to the conclusion of an amicable agreement between the company and your main creditors.

Ranges of devices

> Commands for this

The ad hoc mandate is a preventive procedure for settling difficulties intended for companies that are not in cessation of payments: a situation where the cash available to the company is no longer sufficient to settle its debts. In this case, the company must make a declaration of cessation of payments, called a bankruptcy filing, with the commercial court or the judicial court… It allows the company to rearrange its debts in secret, without informing employees and third parties: person who is not part of the company. Recourse to the ad hoc mandate is chargeable. To know more

> State guaranteed loan (PGE) Resilience: the possibility of restructuring the loan also extended

The new State Guaranteed Loan (PGE) Resilience set up to support companies economically affected by the war in Ukraine, which was initially due to end on December 31, 2022, is extended until December 31, 2023. even for the possibility given to VSEs and SMEs to adjust the repayment period of this loan. Learn more.

> Loss of half of equity

The loss of half of the share capital reflects an alarming financial situation for the company (SARL/EURL, SA, SAS/SASU). The occurrence of this situation leads either to the dissolution of the company, or to the obligation for the partners to reconstitute the shareholders’ equity. Read more

> Backup procedure

The safeguard procedure is aimed at a company that is not in cessation of payments: Situation where the cash available to the company is no longer sufficient to settle its debts. In this case, the company must make a declaration of cessation of payments, called a bankruptcy filing, with the commercial court or the judicial court. and which justifies financial difficulties which it is not in a position to overcome. The safeguard facilitates the reorganization of the company to allow the pursuit of economic activity, the maintenance of employment and the settlement of debts. Learn more

> Simplified judicial recovery: crisis resolution procedure

The crisis resolution procedure is a simplified receivership procedure. It is open to small businesses in cessation of payments: a situation where the cash available to the business is no longer sufficient to settle its debts. In this case, the company must make a declaration of cessation of payments, called a bankruptcy filing, with the commercial court or the judicial court which operated under satisfactory conditions before the health crisis. Read more

> Declaration of claims

When a company is in difficulty and owes money to a creditor: Person to whom one owes money or the supply of a service, this one must make a declaration of claims to obtain the payment of the sums of money owed. This declaration is made to the judicial representative or the judicial liquidator. Learn more

> Additional aid for the 2023 energy bill of VSEs/SMEs

Faced with the sharp rise in energy prices, a large number of public aids have been put in place. In addition to these systems, new means are being implemented to help companies pay their energy bill for the year 2023. Learn more.

> Extension of the support plan for companies emerging from the crisis

The Ministry of the Economy has announced that the support plan for companies emerging from the crisis, which should end on December 31, 2022, has finally been extended due to increases in the cost of raw materials due to the war in Ukraine. Learn more.

> The Resilience subsidized rate loan modified and extended until December 31, 2023

Initially set up to support companies suffering from the health crisis, the Resilience subsidized rate loan now aims to support all companies with cash flow problems related to the impacts of the conflict in Ukraine. This aid is extended until December 31, 2023. Learn more.

They are also at your disposal

  • The Commission of Chief Financial Officers (CCSF)
  • The Codefi: Departmental Committee for the Examination of Business Financing Problems
  • The Ciri: Interministerial Committee for Industrial Restructuring

So, is your business experiencing difficulties? Are you unaware of the devices and possible aids? Meeting on Entreprendre.service-public.fr to take stock of your situation

2023-06-07 22:25:20
#Business #difficulty #systems #exist

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