Bruno Le Maire, Minister of the Economy and Finance, has signed an investment agreement with the Banque de France, the French Banking Federation, the French Association of Financial Companies and overseas institutes, renewing credit mediation for a further 4 years.
A key role in a health crisis
Created in November 2008, the Médiation du Crédit aux Entreprises (Business Credit Mediation Service) has helped more than 14,000 companies find financing despite initial refusal by their bank. In total, more than 3.6 billion loans have been granted, and the 250,000 jobs saved threshold was crossed in summer 2011.
In 2020, the Médiation du crédit played an essential role in the context of the health crisis by supporting companies' cash flow. Indeed, faced with Covid-19, companies have never had so much access to bank credit, as shown by a study published by the Banque de France. But most of them were turned down by their banks, and opted for mediation instead. Whereas 2,000 companies had sought its help in 2019 for problems with contract performance or payment deadlines, in 2020, 9,600 turned to this organization. This trend is directly linked to the pandemic and health restrictions.
Supporting the recovery of French businesses
The 4-year renewal of the agreement on business credit mediation demonstrates the determination of the government, the Banque de France and all financial players to support the recovery in economic activity. "By renewing this agreement, we are giving the mediator the means to continue to carry out his mission and to be available to companies that may need his intervention, particularly in the coming months," said Bruno Le Maire in a press release published on January 26, 2021.
As a reminder, all companies registered in the commercial register, whatever their activity, age, size or legal form, are eligible for mediation. To apply to this body, all you have to do is submit an online file, enclosing all the necessary supporting documents (sales, projected results, last three balance sheets, information on the credit institutions involved, difficulties encountered, etc.).
Once a case has been referred to the credit mediation service, it undertakes to act swiftly, providing a response within 48 hours. An initial diagnosis will be made with the applicant before a decision is taken on the eligibility of the case. The length of the mediation process depends on the complexity of the situation. It may take a few weeks or longer. The operation generally proves effective: in 2019, mediation led to a favorable solution in two-thirds of cases.