Support for asset-based financing as a relay for EMPs: exceptional government measure in favor of factoring – Option Droit & Affaires, update 28/09/2020

 

The coronavirus health crisis and the containment measures it provoked have significantly deteriorated the financial and balance sheet performance of many companies, making it difficult for them to access traditional corporate credit. While the EMPs have provided immediate solutions, they have also weighed negatively on the income statement, given the expected recovery curve. In this context, asset-based financing is a preferred method, since its granting depends above all on the value and liquidity of the asset to which the loan is backed.

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