Purchase of credits and liberal professions.
The professional situation of the liberal professions pushes them to resort to operations of repurchase of credits very often for the purpose of budgetary rebalancing.
The liberal professions
The liberal professions receive, on average, a higher income than the French average. They nevertheless have significant expenses and their income can vary greatly from one year to the next. This variation in income pushes these professionals to use many small loans at low rates, encouraged by banks. This multiplication of small loans leads to an increase in the debt ratio. The professionals then find themselves with professional credits and personal credits (real estate, consumption,) with different durations, amounts and rates.
The repurchase of credit, reserved for the regrouping of personal credits
Professional credits are excluded from the purchase of credits. Although in the life of a liberal professional, professional credits and personal credits are linked, the purchase of credits does not allow them to be grouped together. It includes only personal debts which may include unpaid income tax or bank overdrafts.
The repurchase of credit makes it possible to group all the personal credits of the professional into a single credit with a lower monthly payment and an extended duration. The new credit offers the possibility to include a sum made available to the borrower to carry out a project. In the context of redemption of credits to liberal professions, the amount available is obligatorily affected. The lending institution will ask for a justification for the use of the sum since it is strictly forbidden to use it for professional purposes.
Supporting documents for the redemption of credits
In the context of a credit buyback operation, the supporting documents requested are the same as in the context of a loan application. Nevertheless, for the liberal professions, the last 3 declarations 2035 or the last 3 balance sheets will be requested as well as the last 3 tax notices. This allows the lending institution to have visibility on the health status of the professional activity and its income.