2023-08-29 06:00:19
For business leaders, this is a dreaded deadline. Every year, after the publication of the accounts, the Banque de France carries out a small exercise comparable to that carried out by rating agencies with States or large groups. It assesses the financial health of companies and assigns them a rating, in the form of a “credit rating” and an “activity rating”, proportional to turnover.
This exercise, practiced for forty years by the financial institution and its network of a thousand analysts spread across France, only applies to companies domiciled in France, whose turnover exceeds 750,000 euros. This still represents some three hundred thousand companies rated each year.
This system, whose workings are relatively unknown to the bosses, can nevertheless have a strong impact on the future of their business. “For banks, the Banque de France rating is the starting point of the analysis, the first key to understanding risk”sums up Germain Simoneau, president of the financing commission of the Confederation of small and medium-sized enterprises. “It has a long-awaited impact, because it conditions access to financing. The better the rating, the more money the bank can lend. On the other hand, when you have a bad grade, you have to be satisfied with the financing that we are willing to give you”he continues.
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This rating is not publicly distributed: it is only accessible to a few players, but these are leading business partners: banks, insurers, mutuals, credit insurers and crowdfunding platforms, as well as certain administrations intervening in the prevention of company difficulties.
The Middle Office, responsible for the quality of the corporate database: changes in statutes, managers, etc. In Paris, August 28, 2023. NICOLAS KRIEF FOR “THE WORLD” Economic branch of the Banque de France headquarters, in Paris, August 28, 2023. NICOLAS KRIEF FOR “THE WORLD”
“The problem is the timing”
When the note is bad, or it is degraded compared to the previous year, the consequences are not long in being felt. “Credit insurers and suppliers can go so far as to eliminate the outstanding granted to a company”, testifies Denis Le Bossé, president of the firm ARC, specialized in debt collection. “I have the example of a company that sells electrical equipment to electricians. One of its suppliers granted it an outstanding amount of 40,000 euros. Due to a non-payment, the company had its credit insurance suspended, and the supplier reduced the outstanding amount to 5,000 euros. »
A very penalizing sanction in sectors such as construction or industry, where it can take several months between the purchase of materials or raw materials, and payment by customers. “This situation can be serious for small businesses that do not have the internal resources – chartered accountants, financial director – to go and plead their case with bankers or insurers”observes Mr. Le Bossé.
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