We tell you everything

The funds loaned come from investors keen to support the national economic fabric and its SMEs. The interest paid, less management fees, is used to remunerate investors.

Kredo Debt Fund I is in direct competition with a very large number of investment opportunities available to investors (shares, bonds, investment funds, etc.).

A balance must therefore be struck between all parties to make the investment opportunity attractive and attract the necessary capital to meet the strong demand for credit from SMEs.

Simply because the risk of failure is much greater when launching a start-up. In fact, 9 out of 10 start-ups do not survive.

The financial contribution must therefore be structured differently (convertible loan, share issue, equity capital, etc.) and remunerated in a way other than the payment of interest (dividends, share price appreciation, influence on strategy and governance, etc.).

However, Kredo is investigating the possibility of offering new types of financing for start-ups.

The declaration of solidarity commitment by the main shareholder is the only guarantee required. Why ask for it, when the shareholder-entrepreneur is already devoting all his energy and resources into his SME?

We are convinced that credit is above all a relationship of trust between the parties. The lender has confidence in the SME’s ability to repay the loan and pay interest on time.

In return, the main shareholder is asked to demonstrate his confidence in the project and its management by backing the loan with his personal commitment. This is a strong signal.

Furthermore, the funds loaned come from investors who want guarantees in return.

The joint commitment is quick to set up and enables Kredo to be very reactive in making funds available.

Calculated on the basis of the loan amount, it is paid by the borrower only if the loan is granted. Kredo is committed to an entrepreneurial, human approach, with a focus on advice during collaborative discussions and engagement.

Our aim is to provide maximum added value in structuring the credit and maximize the chances of success. These discussions will be conducted by experienced professionals.

At the same time, like all SMEs, Kredo has operating costs that need to be covered if it is to offer its services on a long-term basis (platform costs, IT costs, salaries of staff analyzing credit applications, etc.). The structuring fee is Kredo's main source of revenue and helps cover its operating costs.

The interest paid by SMEs on their loans is used to remunerate the investors who lend the funds. This system makes it possible to be much more reactive in making funds available.

The SME will have access to financing very quickly, and Kredo will come to the company, saving it a lot of time and hassle. The SME will be able to focus on what it does best: its business!