Guarantee Plus,
the “guarantee & subordinated loan” formula
A “all-in-one” solution managed by your bank for easier access to business credit!
To facilitate access to business credit for Brussels-based entrepreneurs, finance&invest.brussels has developed “Guarantie Plus”, an “all-in-one” solution directly managed by your bank. In addition to the business credit granted by the bank, this scheme combines two financial instruments designed to meet the company’s financing needs while sharing risks with the bank (in case of bankruptcy, for example) and speeding up the granting of bank credit for the entrepreneur.
A unique “credit + guarantee + subordinated loan” formula for maximum leverage
The “Garantee Plus” scheme is an all-in-one financing solution that distributes risk between different financial actors and is activated by the bank.
It combines:
- a bank investment credit
- a guarantee, which is a form of insurance that can cover up to 65% of the bank loan
- an additional subordinated loan of up to 50,000 €, which, in case of difficulty, is only repaid after the bank loan has been repaid
In addition, within this “all-in-one” formula, the bank may also add, depending on the company’s needs, amortising or non-amortising loans that may also benefit from a guarantee.
As an entrepreneur, do not hesitate to discuss this with your partner bank of the finance&invest.brussels group: Belfius, BNP Paribas Fortis, ING, KBC, Beobank and Banque Van Breda.
Who is it for?
The “Guarantee Plus” formula can be proposed by the bank for any business credit application from an enterprise meeting the following criteria:
- Micro, small and medium-sized enterprises, self-employed persons, liberal professions, and non-profit organisations carrying out an economic activity
- Fewer than 250 full-time equivalents
- Annual turnover below 50 million € or total balance sheet below 43 million €
- Located in Brussels (establishment unit in Brussels for which the financing is requested)
- Not in financial difficulty (criterion applicable only to companies older than 3 years)
NB : a company is presumed to be in financial difficulty:- 1. When equity is reduced to less than half and more than one quarter of this equity has been lost over the last 12 months
- 2. When the conditions for collective insolvency proceedings are met, including judicial reorganisation proceedings (PRJ)
- In an eligible sector
NB : Ineligible sectors mainly include: oil sector, hydrocarbons, tobacco, weapons, military/combat vehicles, fund management, investment funds, monetary intermediation, (re)insurance, securities and commodity brokerage, real estate development, libraries, archives, museums, gambling, etc.
Characteristics of the “Guarantee Plus” formula
What investments can be covered by this formula?
The “Guarantee Plus” scheme can be requested by the bank for business loans intended for:
- Real estate and movable asset investments
- Working capital creation/replenishment
- Business acquisition (takeover of another company)
What are the costs associated with this “all-in-one” formula?
- The interest rate on the bank investment loan is defined by the bank itself (often with monthly repayments)
- The interest rate of the subordinated loan is 6%, with quarterly repayments
- Guarantee premium: a fixed amount payable shortly after signing the loan. This premium depends on the duration of the guarantee and the amount covered. More information is available on the guarantees page.
Funding procedure
Automatic application by the bank
After checking the company’s eligibility, the bank submits the automatic application for the subordinated loan and guarantee (covering the bank credit) to finance&invest.brussels via an online platform. No prior approval is required.
Automatic agreement
Regarding the subordinated loan, the platform instantly generates the loan agreement from finance&invest.brussels. It is automatically sent to the company by email. Funds are paid within an average of 5 days following receipt of the signed agreement returned by email and confirmation from the bank that the joint bank loan has been activated.
Regarding the guarantee, the platform automatically generates the guarantee agreement from finance&invest.brussels for the bank.