FAQ

 

On this page you will find the most asked questions about our different services. If you have other questions, do not hesitate to contact us without obligations.

I am a company

Is setting up and installing an inventory pledge with dispossession harmful or inconvenient for the ongoing business ?

 

NO

During the implementation of the inventory pledge structure, Warrant uses the existing warehouses of your company, thus limiting the impact on the existing business organization. Our team will never set up an inventory pledge structure that is harmful to or inconvenient for the company’s ongoing activities.

If the goods to be pledged are located at a logistics party, our structure can be set up in a purely documentary way.

 

Will my inventory be blocked during an active inventory pledge with dispossession ?

NO

Even with dispossession, your goods remain available at all times for the ongoing business, provided you meet a few minimum requirements.

The stock can undergo movements during the duration of the active pledge.

 

Is setting up a pledge structure a complex procedure ?

NO

The setting up of our inventory pledge structure is rather easy.

After the first meeting with one of our experts, we carry out a feasibility study (free of charge) which will allow us to evaluate the project and thus give a positive or negative opinion to your banking partner or other financial institution.

In case of agreement on our part and the final approvement of the financing partner, we can intervene directly to set up the required inventory pledge structure. That way, you lose little time and you can quickly make use of the new funding.

 

What is the minimum duration of an inventory pledge and when can it be cancelled ?

AT YOUR CONVENIENCE

There is no minimum duration for an inventory pledge.

It can be set up for a period of a few weeks to a few years, all depending on your needs. Once you have fully repaid your debt to your banking partner or other financial institution, the structure will be dismantled as soon as possible (if possible the same day).

 

Can I use the inventory pledge structure when my company needs seasonal financing ?

YES

To be able to finance your seasonal activity with the inventory pledge structure, it suffices to have a certain quantity of stock available which can be pledged.

During seasonal financing, the security created for the bank will vary according the level of available stock. At the end of the season, the inventory pledge structure can be put on hold and reactivated for the following season.

 

Can I use the inventory pledge structure when my company needs a one-time financing ?

YES

If you need additional financing for an investment or expansion project, we can at any time assist you in your credit application.

The inventory pledge structure can be an important asset of your application, subject to the presence of the required stock, the positive evaluation of the project by us, and the approval of your banking partner or other financial institution.

Once you have fully repaid your debt to your banking partner or other financial institution, the structure will be dismantled as soon as possible (if possible the same day).

 

Can I use the inventory pledge structure when my company needs a recurring financing ?

YES

If you need long-term financing and you have sufficient stock to set up an inventory pledge, thus creating the security, we can at any time assist you in your credit application. We can quickly implement the inventory pledge structure, providing that we have a positive evaluation of the project by us, and the approval of your banking partner or other financial institution.

Once you have fully repaid your debt to your banking partner or other financial institution, the structure will be dismantled as soon as possible (if possible the same day).

 

What types of stock are allowed for an inventory pledge structure ?

ALL TYPES

All types of stock, including those with limited shelf time, are eligible for the inventory pledge structure. It can consist of raw materials, semi-finished or finished products. However, the available stock must be your entire property. In addition, you must also be able to provide a detailed and valorized inventory list.

These goods can be offered to create the necessary security for the banking partner or other financial institution.

 

Iam a banker or other financial institution

It is not easy to explain the inventory pledge structure to my client.

LET US HELP YOU

The inventory pledge is a dynamic, flexible and reliable formula that creates security for the lender (you, therefore) via the financing of the borrower’s stock.

The implementation of stock financing in general, and the inventory pledge in particular, is rather easy. Thanks to our long-term expertise as a third-party holder, we are able to adapt to every situation within every possible sector.

Thanks to our detailed feasibility study after our first meeting on place, we can assess the situation and determine whether or not the implementation of an inventory pledge structure is possible (inventory analysis, physical barriers, …). This feasibility study can be used during the negotiation rounds between the client and the banking partner or other financial institution. Thanks to our intervention as a third-party holder, a 100% security is created for you, allowing the client to quickly obtain the necessary financing.

To date, 90% of the feasibility studies are positively evaluated, thus proving that all types of commodities may be suitable for the implementation of an inventory pledge structure. It also proves that inventory financing can create a very attractive leverage for financing the growth of the business.

 

It is not easy to determine the resale value of the stock.

DELICATE

Before setting up a stock financing, it is important to evaluate and clearly define the value of the goods and the amount of financing. We can assist you in this process by carrying out a feasibility study on place.

During the duration of the inventory pledge, we, as a third-party holder, will regularly inform you of the quantity and the value of the stock available at the client (daily if necessary), taking into account the predetermined threshold. In addition, we can engage our specialized partners at your request.

 

The value of the stock may decrease in time.

ONGOING BUSINESS

It is possible to anticipate this depreciation by adjusting the percentage of coverage during the creation of the terms of contract. When the first acts are signed, the client’s written commitment regarding the value of the goods also appears.

Thanks to our intervention, you will always be aware of the state of the inventory at your client. We also encourage you to regularly check the inventory in the clients balance sheet.

 

I already have certain guarantees with my client.

COMPATIBLE

There are many cases where we act in parallel with existing guarantees, subject to the necessary evaluation by the partners. A redistribution of the guarantee structure is a possibility.

 

Do you wish to know more about our services?

 

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

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