Roll-over credit to finance a standard investment project

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The objective of roll-over credit is identical to that of a medium-term loan or operating and capital leasing, i.e. using a bank loan to finance investments in standard tangible and intangible assets, thereby allowing for the creation, improvement or development of a business activity.

A characteristic specific to roll-over credit is that the variable interest rate is set at the beginning of and for the duration of each partial period. Partial periods generally have a duration of one, 3, 6, 9 or 12 months.

Objective: it is used to finance the fitting out of offices/showrooms/production areas/storage buildings, production tools, machinery, vehicles, intangible assets (business assets, patents, licences) and sometimes the late payment of fiscal payables (taxes, social security contributions).

Who is concerned?

Available to the self-employed and any type of business, roll-over credit applies in the following situations:

  • creation of a business;
  • acquisition or merger of companies;
  • going from being a lessee to owner of a property;
  • development and modernisation of the business and making the business profitable;
  • refinancing intangible or movable assets or stock with bank debt to free up owned capital for other investments.


Documentation or description of the business

  • copy of the company’s articles of association;
  • group structure if the company is part of a more complex group;
  • last 3 audited balance sheets of the borrower and, if applicable, the latest available trial balance;
  • recent supporting documentation regarding VAT, tax and social security situations;
  • order book (where applicable);
  • list of customers and their relative contribution to turnover;
  • list of suppliers;
  • forecast balance sheet or business plan in the case of a new business activity or a major expansion plan.

Presentation of the project

  • detailed description (including figures) of the planned investment and, where applicable, a market study;
  • financing plan;
  • calculation of feasibility and return and calculation of the breakeven point;
  • appendices:
    • machinery: list of investments, replacement of existing equipment, additional equipment, purchase orders or invoices;
    • company: preliminary sale agreement, due diligence, audited accounts, etc.;


The guarantees required by the bank before granting the loan are the solvency of the borrower and the profitability of the project to be financed. In addition, the bank may ask the beneficiary of the roll-over credit for tangible, personal or moral guarantees deemed necessary to guarantee the loan granted.

The most common guarantees requested for roll-over credit are:

When the partners/shareholders of a business have to stand surety for the company, the bank should be provided with the details of their financial situation.

How to proceed

Duration and amount


  • medium-term
  • generally between 18 and 60 months (depending on the amortisation period of the asset to be financed).


As a general rule, financing of 70 % to 80 % of the value to be financed.

Interest rate

  • interest rate depending on the quality of the client, the project and the guarantees offered;
  • variable rate;
  • variable rate set at the beginning of the partial period for the entire duration of said period. Duration generally one, 3, 6, 9 or 12 months.


Repayment depends on different criteria, including, for example, the amount, the rate, the amortisation period of the asset to be financed, etc.

  • constant amortisation (monthly repayment of the same portion of the principal and varying amounts of interest incurred);
  • amount repaid cannot be drawn for a second time.

Set-up times

The reviewing and processing times depend on the complexity, size and urgency of the case.

Advantages, disadvantages and risks


  • can be used to prevent cash deficits caused by financing investments with working capital;
  • flexible financing with a repayment plan adapted to cash flow;
  • financing of medium-term investments with a variable interest rate (advantageous if interest rates fall) set for a certain period (easier to plan);
  • possibility of refinancing assets (movable assets, stock) or liabilities (e.g. fiscal payables);


  • strict repayment plan to be complied with;
  • form of credit granted for higher amounts;
  • no protection against the risk of rising interest rates;
  • guarantees to be provided to the bank.


Risk of the company becoming over-indebted if the profitability analysis was not carried out meticulously.



Vehicle fleet


Expected life

5 years

10 years

Investment amount



Amount of investment loan



Duration of loan

5 years

8 years

Indicative variable rate

5.00 %

5.00 %

Constant quarterly capital repayment



Interest due on the 1st quarterly repayment date




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