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As a professional, you may need cash for many reasons, for example, meeting payments for orders or raw materials, or paying employee salaries. Working capital financing allows you to finance this expenditure with peace of mind.

What is working capital financing?

Working capital financing*, also known as an authorised overdraft, overdraft facility or cash credit, is a credit line granted** on a current account for professionals. Specifically, it is a cash reserve that you can use and reuse freely, up to the maximum amount and over the term defined in the agreement.

You do not have to make fixed repayments: the overdraft is reduced according to the inflow of funds into your current account, for example, when you receive payments from clients.

The interest due on this type of business loan is booked at the end of each quarter.

What is working capital financing?

Working capital financing** provides you with cash whenever required.
You can, for example:

  • pay suppliers quickly and thus negotiate more favourable terms;
  • pay employee salaries on time, or pay taxes and cover fixed costs without waiting for payment from clients or the sale of goods;
  • cover unforeseen expenditure.

The authorised overdraft can be adapted to each financial situation and professional activity. It is particularly useful when:

  • setting up or expanding your business;
  • your company has a long operating cycle
  • your business is seasonal;
  • you have investment or procurement opportunities for equipment or stock;
  • you grant a long payment period to clients;
  • you want to pay suppliers at a discount.

Good to know

The overdraft facility is not designed to finance specific needs such as machinery, commercial vehicles or real estate. An investment loan, financial leasing or operating leasing should be used for these types of investment.

What are the advantages of working captial financing with BGL BNP Paribas?

The authorised overdraft is a quick and flexible solution.

  • You can access the financing freely**, without having to justify the use of the funds***.
  • You know in advance the maximum amount available and the type of rate that applies.
  • You can repay the working capital financing at any time and terminate it without penalty****.

How can I get an authorised overdraft?

Before granting working capital financing, your advisor will take the time to understand your cash requirements and ensure that the authorised overdraft meets your expectations. BGL BNP Paribas’ managers put their expertise and market insight at your disposal to provide you with the best possible support throughout your project.

Once granted, you can start drawing on your current account authorised overdraft****.

Frequently asked questions

  • icone faq question
    Who is our working capital financing for?

    Our working capital financing is a current account overdraft available to legal entities and natural persons in a professional context. It is intended for start-ups, the self-employed, liberal professionals, SMEs, major companies, public bodies and social agencies.

  • icone faq question
    How much is the authorised overdraft for?

    The amount of working capital financing granted will depend on the client’s needs and financial circumstances.

  • icone faq question
    In which currency is the overdraft facility provided?

    Depending on your needs, it may be available in another currency****.

  • icone faq question
    What is the term of the working capital financing?

    It is a fixed-term agreement, which can, in principle, last up to three years. Requests for renewal* are submitted on expiry.

  • icone faq question
    What guarantees are required?

    The usual guarantees are:

    • a guarantee from the parent company or the partners/shareholders
    • the pledge of a deposit (cash or securities);
    • an existing mortgage;
    • a new mortgage;
    • various corporate guarantees.
  • icone faq question
    When and how can I terminate the working captial facility?

    You can terminate the agreement at any time during the facility’s validity period. You must pay the interest due since the last booking date and repay any principal amount, but no penalty will apply****. In some cases, the bank may terminate or suspend the facility without notice.
    On expiry, the authorised overdraft will no longer be available and any negative balance will be subject to rules on overrunning. You can, however, request an extension of the facility*.


* an administration fee is required to renew a credit line
** subject to approval of your facility by BGL BNP Paribas
*** provided that the funds are used in accordance with the terms of the agreement
**** subject to approval of your application by BGL BNP Paribas