{"id":1231,"date":"2025-01-28T20:37:05","date_gmt":"2025-01-28T20:37:05","guid":{"rendered":"https:\/\/amstelseine.com\/?p=1231"},"modified":"2025-01-29T20:39:32","modified_gmt":"2025-01-29T20:39:32","slug":"advances-and-loans-to-french-companies-limitations-to-be-aware-of","status":"publish","type":"post","link":"https:\/\/amstelseine.com\/en\/news\/advances-and-loans-to-french-companies-limitations-to-be-aware-of\/","title":{"rendered":"Advances and loans to French companies: limitations to be aware of"},"content":{"rendered":"

Background<\/h2>\n

Unlike many countries, a banking monopoly continues to exist in France.<\/p>\n

This banking monopoly has two sides. On the one hand, only a bank is allowed to extend credit on a regular basis; on the other hand, only a bank is allowed to receive funds from third parties on a regular basis.<\/p>\n

Providing credit on a regular basis<\/h2>\n

An infringement of the banking monopoly only occurs if the credit is provided on a regular basis. This usually implies that the lender has extended loans to multiple entities.<\/p>\n

Receiving funds from third parties on a regular basis<\/h2>\n

It is also prohibited to receive funds from third parties on a regular basis. These are funds that a recipient receives from a third party, with the right to use them for his own benefit but with the obligation to return them. In essence, this concerns deposits.<\/p>\n

This prohibition does not apply to funds made available by shareholders and directors. Thus, a company may receive funds from its shareholders or directors without violating the banking monopoly.<\/p>\n

The regularity criterion also applies in this case. To be noted that if a company regularly receives funds from parties that do not participate in its share capital (even if these are always different parties), there is a breach of the banking monopoly on the part of the recipient of the funds.<\/p>\n

Exceptions to the banking monopoly<\/h2>\n

There are two main exceptions to the banking monopoly:<\/p>\n