Repay a shareholder current account without draining the company's cash
A partner is leaving the company, or wants their contribution back, and the cash isn't there? You don't have to sell a building: the company can borrow against its assets to repay them. Hyppo, as a broker, seeks the financing for it.
A personal reply from an adviser
- Partner exit or return of a contribution
- Without selling the company's assets
- From €100,000 to €20M
A shareholder current account is a sum a partner has advanced to their company. The company owes it to them and must repay it on request, unless there is a lock-up agreement. When cash is short, its property can secure a loan.
Hyppo is a broker: it does not lend. It builds the company's file with you and compares offers among more than 65 partner banks. For other projects of your company, see also our page refinancing a property company.
For which projects?
Repay a departing partner, after the sale of their shares or their withdrawal.
Return the contribution of a partner who wants their funds back.
Repay the holding company that financed the SCI, so it can reinvest.
Settle with the heirs of a deceased partner who take over their current account.
As a guide: residential or commercial property, unencumbered or with its remaining loan bought out by the new loan, and financing from €100,000 to €20M. Proof of the use of funds is required.
Examples of current accounts repaid
A partner leaving
A partner sells their shares and asks for their current account. Your SCI borrows against its buildings to repay it, without selling anything.
A contribution returned
A partner financed the purchase through a current account contribution. They want their funds back: the company borrows to return them.
The holding company that reinvests
The holding company advanced funds to its SCI. The SCI borrows against its assets and repays the holding company, which finances a new project.
What Hyppo does for you
- 01
A company file built with you: articles of association, accounts, current account agreement, leases.
- 02
You know what the properties can secure: up to 80% of their value, depending on the file.
- 03
A structure proposed for your case: amortising or interest-only, mortgage, pledge of shares or trust.
- 04
Several offers compared for you, with no investment or account transfer required in return.
How it works
A first conversation about the company, its assets and the current accounts to repay.
You send the articles of association, Kbis extract, financial statements, statement of current accounts, leases and title deeds.
The assets are valued, and you receive the offers, compared for you.
You sign at the notary's, and the company repays the partner.
Why go through Hyppo to repay a current account?
A company file built with you
Articles of association, financial statements, current accounts, leases: you know what to provide, and the company is presented the way a lender looks at it.
Several offers compared
Hyppo compares several offers for you, rather than leaving you waiting for just one.
Nothing required in return
No investment or account transfer is required in return for the loan.
A registered broker
Hyppo (REFI Technologies) is registered with ORIAS under number 23005573 as an intermediary in banking operations and payment services.
Frequently asked questions
Another question about your situation? A Hyppo adviser will answer.
Must the company repay as soon as the partner asks?
Yes, unless there is a lock-up agreement or a clause in the articles. Without anything in writing, the advance is repayable at any time. A partner leaving can therefore force the company to find the necessary cash quickly.
Buyout or repayment of the current account: what is the difference?
Repayment is made by the company, which returns the sum to the partner. A buyout is made by a third party, often the buyer of the shares, who takes over the claim for a price. Selling shares does not transfer the current account: the deed must provide for it, otherwise the seller remains a creditor of the company.
Is the repayment taxable for the partner?
Not the capital: the company is returning a sum it borrowed. Only any interest on the current account is taxable. Have the tax treatment of the company's loan validated by your accountant.
What guarantees are required?
Most often a mortgage on the company's property. Depending on the file, it may also be a pledge of shares or a trust, and sometimes personal guarantees from the partners. In an SCI, partners are liable for the company's debts in proportion to their shares (article 1857 of the French Civil Code).
How much does Hyppo's support cost?
Hyppo's fees range from 1% to 6% of the amount financed and are due only after the funds are released. Arrangement fees and the valuation of the properties remain at the company's expense.
