Financing of a food store – investment credit

A week ago, PrestaFlex participated in the financing of a grocery store in Lausanne

The grocery store in question is specialized in the food and beverage retailing and has its own bakery and rotisserie. The grocery store contacted PrestaFlex to restructure one of its two locations through an investment loan. The company’s objective was to invest in the infrastructure, warehouse and human capital.

An investment loan was possible despite the complexity of the grocery store’s legal status

As the food store’s legal status was in transition, PrestaFlex had to use its flexibility to allow commercial financing. Indeed, the grocery store wanted to transition from an individually owned firm to a limited liability company. We made a loan to the individually owned firm, since the limited liability company would have been too young to get a business loan.

PrestaFlex had to start with a credit repurchase

In addition to the complicated transition of the legal form, the grocery store already had a credit, which increased the administrative work. Despite this, PrestaFlex was able to carry out the credit repurchase with new and much more advantageous conditions:

– 1.25% decrease in the interest rate

– Increase of the initial amount to obtain CHF 200’000

– Monthly repayment over 36 months

Refinancing, an ideal solution for any company that wants to benefit from better loan conditions

The refinancing, also called credit repurchase, is the ideal solution for any company with an outstanding loan that wishes to obtain a new contract or more advantageous conditions, as the food store in Lausanne was able to do. Among the benefits of this type of financing, it is even possible to reduce contractual restrictions and to switch from a variable rate debt to a fixed rate debt (and vice versa).

More information under : The refinancing, an ideal solution to lower your monthly credit costs

Written by : Patrick Lopes, financial assistant at PrestaFlex and Arij Kamel, Marketing Trainee, Fribourg