How to limit the impact of the reimbursement of the PGE?

Despite the current situation related to the war in Ukraine, the 4-year reimbursement of PGE (State Guaranteed Loans) has started. In this context of rising energy and commodity prices, the Banque de France is however reassuring and estimates that only 3% of the companies concerned will not be solvent.

For all others, the PGE represents an average of 6.25% of annual turnover. This increase in business spending particularly affects our sector of activity: agriculture and agri-food.

Different solutions are possible to lighten the reimbursement of the PGE:

• Renegotiate only the loan to spread it over a longer period,
• Appeal to the National Mediator of the Banque de France
• Call on interim management for:
  • Restructure and reorganize the business
  • Clean up company finances
  • Have a competent interlocutor vis-à-vis the creditor.

Interim management’s mission is to provide, as a matter of urgency, a concrete and immediately operational solution to restructure the company according to its situation and needs. He is also responsible for ensuring change management, both on a technical and human level.

Restructuring makes it possible, on the one hand, to optimize costs and therefore to generate a larger margin allowing the company’s profits to be kept in balance. On the other hand, this action can also make it possible to develop the growth of the company, without having to lower costs, to preserve jobs and maintain a calm social climate in the company.

The financial profile transition manager can support the company on various subjects, whether as a replacement for a CFO or to support the teams in place to:

• Revise growth forecasts
• Readjust selling or buying prices
• Secure cash and operating forecasts
• Ensuring the financial sustainability of the business
• Use their experience and network to get the banks what the business needs.

Interim management is an interesting solution to support companies in the reimbursement of the PGE, while protecting their cash flow and their social climate.

Laurence is at your disposal to implement this system in your company.