What is an investment loan?
Investment loans* offer medium- or long-term funding for moveable or immovable durable goods. The purpose of acquiring these goods must be to launch, improve or develop your professional activity.
Specifically, you can use an investment loan to finance the acquisition of:
- land, industrial workshops, warehouses, buildings, offices or commercial premises;
- tools, equipment and machines;
- vehicles and rolling stock;
- raw materials;
- intangible goods, such as business assets, patents, licences, software, etc.
Good to know
As a general rule, the loan will cover 70% to 80% of the value of the asset.
Who can take out an investment loan?
This type of bank loan is only available to professional clients in the context of their professional activities. Borrowers may be legal entities or natural persons acting in their capacity as a self-employed professional or member of the liberal professions.
What are the benefits of a professionnal bank loan ?
Investment loans offer a high level of flexibility to meet the specific needs of each project.
They enable you to*:
- choose your preferred type of interest rate – fixed, variable or adjustable;
- set the repayment period – typically between 3 and 15 years;
customise your repayment frequency based on your company’s repayment capacity and the depreciation, or longevity, of the financed asset;
- use the funding in full at the start of the loan, or use it gradually as and when you need.
How to take an investment loan?
A BGL BNP Paribas advisor will take the time to listen to you in order to identify the type of investment loan* best suited to your needs. They will assess your project, financial situation and repayment capacity. The two of you will discuss the type, purpose and term of your preferred loan.
The advisor will use the information they gather to draw up a loan application. Subject to approval by the bank, you’ll receive a draft response setting out the terms and conditions of your investment loan. Once these have been approved, the contract is signed and the funds are made available in your account in the manner provided for in the contract*.
Frequently asked questions
Our investment loans are highly flexible. What’s more, our advisors’ experience and specialist knowledge ensure you receive the best possible guidance throughout the process.
Financial leasing is a method of financing allowing any professional to finance their investments through rental payments. With this means of financing, the professional is not the owner of the financed assets. They are leasing the asset, and have the option to purchase it at the end of the lease.
By contrast, an investment loan enables the borrower to buy the asset outright. The professional therefore owns the asset once the loan is paid off.
Furthermore, only moveable goods can be covered by a financial lease, whereas investment loans are intended for both moveable and immovable goods.
Investment loans are exclusively aimed at professionals (legal entities, natural persons or members of the liberal professions) for the purpose of financing a professional project.
Naturally, the bank will check that the loan under consideration is suited to the client’s financial situation and that it meets their needs and objectives.
You may be asked for various types of collateral, depending on your situation: joint and several guarantee of the partners, mortgage registration, mortgage mandate, cash pledge, insurance policy assignment, etc.
The term is typically between 3 and 15 years, depending on the purpose of the loan. It may be possible to repay the loan early, either partially or fully, in certain cases.
The interest rates offered depend on the interest rate type, the project, associated collateral and the term of the loan.
* subject to approval of your loan by BGL BNP Paribas