All types of credit for your business explained

What are professional credit solutions and who are they for?

Professional credit solutions are financing products designed specifically for your business activities, whether that's investments, day-to-day operations or working capital. These types of credit are tailored to different financing needs.

Who can apply for professional credit?

• Self-employed professionals as a main occupation
• Self-employed professionals as a secondary occupation
• Liberal professions (lawyers, doctors, architects, etc.)
• SMEs
• Start-ups, including those with a limited track record

Conditions vary depending on the type of credit, the amount requested, and your financial profile. All applications are subject to approval.

Working capital finance: bridging a temporary shortfall

The most common reason why entrepreneurs need credit is not a structural lack of funds. More often, the issue is timing: turnover exists, but the money does not always arrive in the account at the right moment. This creates a working capital shortfall. Credit solutions for these situations are known as working capital finance or short-term business loans for self-employed professionals and businesses.

Overdraft facility

An overdraft facility is a flexible credit line linked to your account and available immediately. You can go below zero on your account up to an agreed limit, and only use the facility when needed. This enables you to continue paying incoming expenses while waiting for customers to settle invoices.

A practical example A contractor has just finished a large-scale construction project. The final invoice is still outstanding, but wages and materials must be paid next week. With an overdraft facility of €15,000, the contractor can bridge the gap without slowing down business operations.

What you should know about overdraft facilities:

• Available from €2,500
• You only pay interest on the amount used, not on the full limit
• Ideal for temporary or unexpected shortfalls 
• Interest payments are tax deductible as business expenses

Factoring (invoice finance)

With factoring, you can entrust the financing, follow-up, collection and protection against non-payment of invoices to an experienced partner. This enables you to receive your money more quickly and improve your working capital position. You can receive up to 90% of the invoice amount within 24 hours of issuing it to a customer. You can also track the status of your invoices in real time.

A practical example An IT agency works with large companies that offer payment terms of 60 or 90 days. Thanks to factoring, the business receives the funds within 24 hours, allowing it to start new projects without delay.

What you should know about factoring:

• Faster access to cash and therefore working capital
• Particularly useful for businesses with long payment terms or high invoice volumes
• Less administrative follow-up of outstanding invoices

Investment finance: investing without using your working capital

Do you want to invest in the growth, renewal or expansion of your business? Investment finance or an investment loan allows you to spread those costs over time. This means you do not have to pay everything at once, while interest payments may also be tax deductible. At the same time, you preserve your liquid assets for daily operations and unexpected expenses.

Instalment loans

An instalment credit is a straightforward loan for specific expenses that do not directly generate income, but are necessary to run your business. You borrow a fixed amount and repay it in fixed monthly instalments.

A practical example The treatment table of a self-employed physiotherapist breaks down. A replacement costs €3,800. Thanks to an instalment credit, the physiotherapist can repay the amount over 24 months in fixed monthly instalments, without having to use savings.

What you should know about instalment credit:

• Available from €2,500
• Flexible duration: minimum 6 months, maximum 10 years
• Fixed interest rate throughout the full term
• Suitable for different purposes: supplier invoices, repairs, refurbishments, etc.

Investment credit (medium- or long-term)

An investment credit or investment loan is the classic financing solution for larger investments intended to grow your business, such as machinery, equipment or renovations. You borrow a fixed amount and repay it gradually over the economic lifetime of the investment.

A practical example A baker wants to purchase the premises next to his current bakery to expand the business. He also wants to buy a new oven, dough mixer and cold room. The total investment amounts to €300,000. As this is a large long-term investment, he takes out an investment loan over 20 years. This aligns repayments with the lifetime of the investment and the additional income generated by the expansion.

What you should know about investment loans:

• You choose the amount, duration and repayment frequency
• The loan does not need to be drawn down in one go and can be released gradually based on incoming invoices
• Choice between fixed or variable interest rates
• Interest payments are tax deductible as business expenses

Straight loan (credit line in instalments)

A straight loan is a flexible credit line financing solution where you are granted a maximum amount and draw down funds as needed. This is useful when you do not yet know exactly how much financing you will need, for example, for phased projects.

A practical example A construction company is launching a phased renovation project. It expects to need around €150,000 in total, but expenses will be spread over 8 months. With a straight loan, it draws down the required amount for each phase, aligned with expected incoming revenues.

What you should know about straight loans:

• Available from €100,000 (minimum drawdown: €25,000)
• Funds are available in your account within 48 hours of drawdown
• You only pay interest on the amount used

Roll-over credit

Ideal for large investments or acquisitions, a roll-over credit allows you to benefit from short-term interest rate developments while financing over a longer period. The interest rate is periodically revised based on Euribor*.

*Euribor (Euro Interbank Offered Rate) is the average interest rate at which European banks lend euros to each other. It is used as a benchmark for setting credit interest rates.

A practical example An entrepreneur wants to buy business premises for €500,000. They expect interest rates to fall in the coming years. With a roll-over credit, they can benefit from the current Euribor rate instead of being tied to a long-term fixed rate.

What you should know about roll-over credit:

• Available from €100,000, with terms ranging from 1 to 15 years
• Flexible drawdown period (maximum 3 years)
• Flexible repayments: you choose the amount, term and repayment frequency
• Variable interest rate: interesting if you follow the market or expect rates to fall
• Interest payments are tax deductible as business expenses

Leasing: using equipment without purchasing it immediately

You do not need to own everything required for your business. Leasing is an alternative whereby you pay a monthly fee to use equipment without buying it outright.

Financial leasing

With financial leasing, you lease equipment through a leasing company instead of purchasing it immediately. This can include passenger vehicles, bicycles, production machinery or IT equipment. At the end of the contract, you have the option to purchase the equipment at a residual value determined at the start.

A practical example A photographer/videographer wants to renew equipment worth €12,000. Through financial leasing, they pay a fixed monthly amount over 36 months. At the end of the contract, they purchase the equipment for the residual value and become the owner.

What you should know about financial leasing:

• You choose the supplier and negotiate the price
• Purchase option at the end of the contract
• Limited and straightforward administration
• Suitable for vehicles, machinery, IT equipment, bicycles, etc.

Social and tax-related credit solutions

Certain expenses recur annually, such as holiday pay, social security contributions, year-end bonuses and advance tax payments. Although they are predictable, they can still have a significant impact on your working capital at inconvenient moments.

Social and tax loan

This type of loan is specifically intended for social and tax-related expenses such as year-end bonuses, holiday pay and social security contributions. You pay your employees at a fixed time, while your own costs are spread over the whole year.

A practical example An entrepreneur employs 5 staff members. Their holiday pay and year-end bonuses amount to more than €18,000 in June and December. Thanks to a social and tax loan, these expenses are spread over the year, helping to maintain stable working capital.

What you should know about social and tax loans:

• Available from €2,500
• Spread expenses across the entire year
• Easy online application

Credit for advance tax payments (Bonifisc)

Making advance tax payments is important to avoid tax increases. Businesses that pay enough and on time benefit from tax advantages. If you do not have sufficient liquid assets available, a loan for advance tax payments may be an interesting option.

A practical example A self-employed consultant expects a higher tax bill this year, but would prefer not to use working capital to pay it. With a Bonifisc credit solution, they can make advance tax payments at the optimal moment without impacting cash flow.

What you should know about Bonifisc:

• Apply (ideally) before the first annual advance payment deadline
• The earlier advance payments are made, the greater the potential advantage
• Interest payments are tax deductible
• We handle the administration and make the advance payments on your behalf 

Microcredit: a stepping stone for start-ups and self-employed professionals with a secondary occupation

Not every entrepreneur has an extensive track record or audited annual accounts. This can make it more difficult to provide the guarantees banks require. If you are a start-up, a self-employed professional with a secondary occupation or entrepreneur restarting after bankruptcy, you may encounter barriers when applying for traditional financing.

microStart

For those with more limited access to traditional bank financing, microStart offers microcredits of up to €25,000 along with personalised guidance.

A practical example A hairdresser wants to launch a mobile salon and needs €8,000 to cover the cost of equipment and a van. She has been in business for less than 2 years. Through microStart, she receives a microcredit as well as free coaching from an experienced entrepreneur, who helps with planning and financial management.

What you should know about microStart:

• Suitable for all kinds of needs (cash flow, equipment, rent, transport, etc.) and statuses (sole trader, company, main or secondary occupation, student entrepreneur, etc.)
• Includes free support from experienced experts
• Interest rates are generally higher than traditional bank financing, but the added value lies in access to financing and support
• Ideal as a first step towards broader financing possibilities

Choosing the right type of credit: ask yourself these 2 questions

Is your financing need one-off or recurring?

• One-off (e.g. an investment): choose investment finance or leasing
• Recurring (e.g. cash flow shortages): consider overdraft facilities or factoring 

When will you be able to repay?

• For investments:

Align the repayment term with the investment's payback period. For example, a machine that doubles production will gradually pay for itself.

• For cash flow shortages:

Align the financing with your payment cycle. For instance, do your customers typically pay after 60 or 90 days? Then choose a financing solution that covers that period.

Not sure which type of credit suits you best?

Every business is different. The right financing solution depends on your activity, cash flow, plans and financial profile.

Find out which types of credit best suit your business:

• Compare your options with our online simulator.
• Request an appointment with an advisor for personalised guidance.

Discover our range of professional credit solutions