Is interest-free financing legal for a company in France?
French law obliges no one to stipulate interest in a financing contract. The interest-bearing loan is one option, not an obligation. You can finance an asset or a project through other mechanisms provided for in the Code civil (the French Civil Code) and the Code de commerce (the French Commercial Code).
In practice, two families of structures are used. The first rests on a commercial operation: a funder acquires an asset and then transfers it to you at a firm price payable in instalments, the difference between the purchase price and the resale price being a margin fixed at signing. The second rests on an equity contribution: the capital provider shares in profits and losses, with no guaranteed return.
Each structure has distinct legal, accounting and tax consequences. Our role is to design the one that fits your situation and to secure its drafting.
This answer is general. For an analysis suited to your company, ask your question to the firm: the first answer is free of charge, within under 24 hours.
Other questions
What is the concrete difference with a conventional bank credit?
Conventional credit charges interest on outstanding capital. Risk-sharing financing rests on a fixed margin or on a share of the actual results.
Can you exit a bank credit that is already running?
Yes, provided you review the early-repayment charges, the security granted and the tax timing of the operation.
How is this type of financing treated for tax purposes?
The commercial margin and the profit share follow distinct regimes. The arrangement must be documented to stand up before the tax authorities.