At times like these, it is not good be exporting SMEs. To his misfortune, the WACC (counter of raw minerals), specialized in the production, processing and trading of industrial minerals, carries out 60 of its turnover from France with 300 clients in over 50 countries. Of course, the crisis leaves fear a decline in net sales around EUR 7 million in 2009. "It is the round back, hopefully still achieve the balance this year," explains Joëlle Briot, CEO at the controls of this family business.
A misfortune is never alone, arriving the WACC has suffered like many other SMEs a strong reduction in guarantees of credit insurance on its export customers. "We tried to negotiate, it collided with a wall. Our insurer explained that he had already lost too much money with foreign buyers who had filed their balance... "Lot of consolation, the WACC was able to maintain coverage on its French buyers. For those located abroad, particularly in countries where transparency and possible remedies in case of failure are limited, the WACC is caught between two fires. Either he request immediate settlement, to the risk of losing customers who do not have enough cash, or to borrow and still suffer a decrease in turnover. Either it continues to grant credits from insurance, even if facing a unpaid. Cruel dilemma, experienced today by SME exporters waiting for the implementation of the device CAP Export (see below).
Accused of releasing their clients at the time when they are most need them, credit insurance defend by pointing the losses they have suffered or may suffer if they cover everything - will their risk of unpaid. "The situation has deteriorated strongly, as evidenced by the decline of 15-20 of the activity of enterprises and the doubling of the credit risk. This justifies to be more selective. "Each month, we are nevertheless 4 billion of new funding", explains Michel Mollard, President of Euler Hermes SFAC, number one credit insurance.
Vicious circle
Deputy Director-General of Coface, François Meunier that 70 of SMEs representing 30 of its outstanding clients, view his side knowing the enterprises during the crisis. "It has played fully." Our outstanding have not declined, they grew by 6.3 since January 2008.
Bank financing is not easy for SMEs, they would soon receive money from their customers. This is the case of Emac for example. This SMEs with 75 employees located in the Pyrénées-Atlantiques, which operates in the processing of rubber, has been ripped into the crisis of the automotive industry where it achieves half of its turnover. "My cash is tense and I have never known as hard period for access to credit and overdrafts. "The dialogue has become difficult with the bankers," said Pierre Lalanne, Director-General that attempts to compensate by developing factoring.
But on the front of factoring, the situation is much more brilliant. "The crisis decreased activity, working capital needs and thus factoring of some SMEs.". "But we must also reduce the fundable part of invoices they cede us where credit insurance reduce themselves their coverage", explains Philippe Lepoutre, CEO of CGA (company General factoring of the Société Générale Group). When their clients are insured, factors can obtain compensation from credit insurance if they are unable to recover the debts which have been sold. Restrictions of the insurers have for consequence of complicate the access of SMEs to factoring, thus completing the vicious circle for the latter.
It is an attempt to break the Government has set up the device of the CAP (see below).
This is what was observed during the last decadesThere was more than a thing to do was to sell assets We are a pair the gourmet and the neophyteThe part is more difficult for the euro areaNothing significant was agreed to this dayIts core capital is about to be increased to 8On the contrary And under Chirac and SarkozyThis cycle ends with chronic hyperglycemia of bloodThe two giant walls are entrouverts on a deep nightThree major points were indeed against it
