Impact of the Coronavirus on your business: Pragmatic advice from public accountants and innovation finance consultancy to manage this period.
A few weeks after the start of the crisis, what strategy (s) to put in place between the effects of announcements and concrete solutions to get you out of it?
Some advertisements are transformed into prescriptions: how to profit from them?
The accounting firms TGS, ACC and innovation consulting GAC Group joined forces during a webinar to provide you with concrete and additional information on the financing solutions currently available to you.
5 key points were discussed during this webinar :
- Customers / suppliers / employees: how to manage the situation?
- Bank / URSSAF: what can they do for you?
- CIR (and CII / JEI): subtleties of accelerated reimbursements
- Government: what about the guaranteed cash loan, tax breaks…?
- Bpifrance: what do the different loans on offer involve?
#1 – Customers / suppliers / employees: how to manage situation?
- Maintain the link : when activity picks up again, all your competitors will want to make up for lost time and your customers will be over-used.
- Review your sales / marketing & innovation strategy : your client will have changed after this crisis. Take the opportunity to personalize your customer relationship and make it more human
- In the event of contract cancellation or renegotiation : Short term ! Anticipate a recovery
- In the event of late or non-payment of invoices : Negotiate deadlines but don't stop settlements
- Donors : negotiate with them (no legal obligation foreseen) a temporary rent suspension
- Various suppliers (energy…): contact them to postpone the next installments (or your bank to reject direct debits if applicable).
- Social and / or tax deadlines (URSSAF, taxes): Ask for the postponement!
Creation of a crisis unit relating to payment terms:
Led by the Business Mediator, the Payment Deadlines Monitoring Committee can intervene at 3 different levels:
- First of all, and this is its initial vocation: it mediates between the stakeholders
- Then, when mediation does not work: the Committee can resort to “Name and Shame”, that is to say it makes public the names of the large groups blocking their payments.
- Bruno LE MAIRE also announced that bank guarantees could not be granted to companies not paying their suppliers.
Sources of optimization / risks exist following the many changes since 2018 (Fillon, Versement Transport, AGEFIPH contribution, establishment of the DSN, etc.)
Social and Solidarity Contribution of Societies :
- The deadline to declare the C3S 2020 is still set for May 15
- Sources of savings may exist on the calculation of C3S 2017 to 2019
- If this is the case, it is possible to integrate them during the C3S 2020 declaration on May 15.
- After May 15, we will no longer be able to come back to the C3S 2017 ...
Management of partial unemployment (03/31: 3.6 million employees / 400,000 establishments / 11 billion euros)
- You now have 30 days to make your request, with retroactive effect.
- The Labor Inspectorate will carry out checks once the crisis is over
Management of paid leave
You have the right to impose holidays on your employees (ordinance of March 25, 2020)
- Provided that this is provided for by a company or branch agreement
- Within the limit of 6 days,
- RTT management: You have the right to impose RTT on your employees (by referring to the agreements in force)
Home office management
- 30% of employees feel they are working longer than usual
- Take advantage of it to improve "creative" productivity
#2 - Banks: what can they do for you?
- Ask him for a cash loan: the money can be loaned at the rate of 0.25% the first year, guaranteed at 90% by the BPI.
- Ask him for an immediate postponement of current credit maturities over 6 months: as far as possible a postponement of the payment of interest as well.
- Ask him for an immediate postponement of current leasing deadlines: vehicles, equipment, real estate, etc.
#3 – CIR (Aid, Grants and Calls for Projects): subtleties of accelerated reimbursements
The administration committed on Friday March 13, 2020 to speed up debt repayment procedures. You can request the reimbursement of your 2019 CIR by filing Cerfa 2069a and 2573 before filing the tax package
All the rules remain unchanged : only SME declarants "in the community sense" can claim it and only the excess part of the corporate tax is refundable. As for “non-SMEs”: they can (as they are already allowed), request the reimbursement of their previous receivables of more than 3 years, in particular those relating to the CIR 2016.
If the Business Tax Services (SIE) organize themselves to speed up the processing of all these requests, it is not excluded that the technical and financial supporting file is required.
The acceptance of a refund request does not guarantee the absence of a subsequent tax audit, possible from the start of the September school year.
In the case of a first request for accreditation: until April 15, 2020 If renewal request: between September 1 and November 30 of the last year covered by the previous accreditation.
National, regional and local aid is also available!
- Auvergne Rhône Alpes: Emergency aid fund of up to € 100m for businesses
- Ile de France: Guarantee of cash loans for VSEs and SMEs up to 90 %
- Occitanie: Solidarity fund for companies with less than 10 employees of € 25m
- PACA: National Solidarity Fund of the State of € 18m
#4 - Government: what about the guaranteed cash loan, tax rebates…?
Special attention given to the Startup :
- 80 million euros, financed by the Investments for the Future Program (PIA) and managed by Bpifrance, for the financing of bridges between two fundraising;
- State-guaranteed cash loans (up to twice the France 2019 payroll, or up to 25 % of annual turnover);
- An accelerated reimbursement of corporate tax credits that can be returned in 2020, including the research tax credit (CIR) for the year 2019 (we discuss the terms in our news of March 16), and VAT credits;
- Accelerated payment of PIA innovation aid already allocated but not yet paid (estimated amount of 250 million euros).
Concerning the bank guarantee of 300 billion euros :
The companies concerned thus have until 12/31/2020, to request from their banking establishment a loan guaranteed by the State to support their cash flow.
This loan must meet the following conditions:
- Represent only a maximum of 3 months of 2019 turnover, or two years of payroll for innovative companies or companies created since January 1, 2019
- No refund will be required for the first year
- Amortization of the loan over a maximum period of 5 years
- Until next December 31, you can ask your usual bank for a loan guaranteed by the State to support your cash flow.
- This loan can represent up to 3 months of 2019 turnover, or two years of payroll for innovative companies or companies created since January 1, 2019.
- No repayment will be required for the first year: the company may choose to amortize the loan over a maximum period of five years.
Regarding tax rebates : You can apply to the public accountant for a settlement plan in order to spread or postpone the payment of your tax debt. If these difficulties cannot be solved by such a plan, you can request, in the most difficult situations, a remission of direct taxes (tax on profits, territorial economic contribution, for example).
#5 - Bpifrance: what do the different loans on offer involve?
- Guarantee of 90% instead of 50% with the Banks, if the loan granted is for 3 to 7 years
- 90% guarantee of overdrafts if the bank confirms the overdraft over 12 to 18 months
- An unsecured Asset loan can be granted over 3 to 5 years for VSEs, SMEs and ETIs from 10,000 to 5 million euros for SMEs and several tens of millions of euros for ETI, with a significant deferred repayment
- A cash support loan can be granted (without collateral and without security of assets).
- A Rebond loan can be granted in partnership with the Regions, from 10,000 to 300,000 € and subsidized over 7 years (with 2 years of deferred repayment)
- The mobilization of invoices on public and private markets can be carried out with the addition of a cash credit of 30% of the volume mobilized.