Real estate credit: the unnamed gang of entrepreneurs

Posted on Apr 28, 2022, 7amUpdated on April 28, 2022 at 10:47 am

Robin Collet put all odds on his side. Founder since 2021 of the start-up Cybille, specializing in grief support, this 26-year-old entrepreneur has prepared a solid process to get a mortgage and buy an apartment in Rennes: “ I built a complete business plan explaining why I wanted to invest and I had calculated the return on that investment. I saw four banks that explained to me that they had never seen such a complete file. »

It must be said that Robin was immersed in this culture: “ My mother had several apartments that she rented and she introduced me to management. Later I took a course on real estate taxation “, he adds.

“I was immediately asked for a report”

Despite these experiences and stable income of 2,200 euros net per month, the businessman was unable to gain the trust of the four banks approached, due to his independent status, considered too uncertain.

Automotive Entrepreneur” They immediately asked me for a swing, which I didn’t have. “. In the end, he decided to postpone his project, having invested heavily in his business.

While 44% of French people want to buy real estate in the next five years, access to bank credit is still very uneven. The worst are still the workers, according to INSEE. From 1968 to 2014, the share of owners in this social class increased by only 6.1%, compared to 12.4% for all families and 22.9% for executives. Artisans, merchants and entrepreneurs are the second least favored, with an increase of 11.3% in the same period.

A trend that may come as a surprise, as the self-employed are increasingly numerous (their number grew by 3.3% per year between 2009 and 2019). According to a study by the broker Vousfinancer published in 2021, only 6% of borrowers are self-employed (self-employed entrepreneurs, entrepreneurs, artisans, merchants and liberal professions), while representing about 7.5% of the active population. For those lucky ones, getting credit was done on one condition: present a balance sheet of at least three years.

underprivileged startups

This is precisely the weakness in the case of Laure Bougueun, founder of Ho Karan, a natural hemp-based skin care brand. Despite her 4,000 euros net monthly income, the businesswoman cannot borrow. ” Bankers told me I had no hope “, she says. When she founded her company in 2015, the businesswoman chose to become a permanent employee of her company for five years. But in 2021, in order to diversify her activities, she creates a holding company (which invoices Ho Karan) and at the same time regains its independent status.

A decision that the banks did not like…” This change allowed me to double my salary. And yet, when I wanted to buy an apartment in Marseilles, I was asked for three years’ income from my holding company. Ho Karan’s numbers didn’t matter. When I was an employee, I was told that I didn’t earn enough and now I’m told that my holding company hasn’t been on the market for three years. It doesn’t make you want to start at all “, she says with a sense of injustice.

Christophe Vielpeau, notary associated with Meaux and member of the development mission of the Superior Council of Notaries, deciphers this requirement: “ Bankers need reassurance. You need to have enough leeway on your balance sheet to be able to pay “. This real estate expert insists above all on the importance of the project’s financial arrangement.” we have to do a solid business planwith a forecast and, if necessary, determine the person or structure that will own the walls “, adds Christophe.

To facilitate funding when the financial contribution is insufficient, there are solutions: The banking establishment may purchase a property to replace the company, which it leases to it under a real estate lease. The company pays a fee, like a finance lease, and after a certain period of time the company can exercise the option and become the owner. This reduces the risks for banks. But when you need to do a work, for example, it is necessary to obtain the consent of the lessor who owns the property at the beginning of the project. “.

demanding bankers

Since January 2022, the criteria for accessing property were recently reinforced, on the initiative of the Superior Council for Financial Stability (HCSF). The new concession conditions indicate that the household indebtedness ratio must be a maximum of 35% for loans up to 25 years.

In addition to the personal situation, it is sometimes the nature of the business project that holds bankers back. Laure Bouguen paid the price when she wanted to invest in a Paris fulfillment center for her Ho Karan brand. ” I didn’t get any money from the banks because they refuse to finance hemp products “. The businesswoman therefore turned to business angels, who allowed her to pay the rent of the premises and the many works, in a total of 400,000 euros.

to be accompanied

39% of French people now use a broker to get a mortgage. A number that has increased by 10 points since 2015.

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