Inventory pledge, an effective credit instrument in 2017

by | Jan 2017 | EN, Inventory pledge

The Belgium based company Warrant is since its beginning considered as one of the inventory pledge experts in the field. Inventory pledging is a technique that ensures that stock financing becomes a healthy and structured credit instrument, for both the borrower and the lender of the finances. 

2017 is no different. Due to the growing number of start-ups and the many stable growth companies in Belgium, the demand for extra funding is increasing. But we all know that achieving this financial injection is not always obvious. Some of these companies also operate with a supply structure and therefore possess in many cases considerable amounts of stock, which have required a large investment. But what if they can ‘reuse’ the available stock to obtain this additional funding?

Inventory pledge

We offer an efficient solution for companies who want to ‘refinance’ their stock. The inventory pledge ensures that stock financing gets a healthy and solid basis. Warrant acts as Third Party Holder and is an important link between the lender and the borrower. We provide a legal structure to generate extra security for the lender and flexibility for the borrower. Our solution doesn’t hinder the ongoing daily business of the company. So no discomfort for the lender, but with full advantage of the inventory pledge as credit instrument.

How do I know if my company is eligible for the inventory pledge?

The best way to determine this is through a first meeting on site. That way we can fully explain the technique and immediately get an idea about a potential physical integration.

If you already have been in contact with your bank, we definitely recommend to involve them from the start. That way we can work fully transparant.

Do you wish more information about inventory pledge?

Warrant NV/SA – Romeinsestraat 10 box 15, 3001 Heverlee – T +32 2 511 29 31 – F +32 2 514 00 17 – E info@warrantgroup.com

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