Can you exit a bank credit that is already running?
It is possible to settle a running credit and replace it with an interest-free financing structure. The operation calls for several points to be checked before committing.
We first review the existing contract: the early-repayment charge, the déchéance du terme clauses (acceleration of the debt), guarantees and registered security. We then check the accounting and tax impact of the early repayment, in particular the treatment of costs already incurred.
We finally design the takeover structure, which may run through the acquisition of the asset by a funder or through a strengthening of equity, depending on your cash flow and your objectives.
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
Is interest-free financing legal for a company in France?
Yes. French law imposes no interest and allows several financing structures based on a commercial margin or on profit sharing.
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.
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.