Financing & security

Many companies and organisations need financial resources as working capital for their ongoing business operations. To grow or develop, investments are needed, which require financing. So what does it all involve?

Risk capital

If it concerns a BV, the shareholders might pay up additional capital. This would not be a loan, but risk capital. Shareholders may also decide to lend money to the BV. Or a third party that is prepared to provide risk capital can be given shares. The shareholders then decide to issue shares and the third party pays up the issued shares (through a civil-law notary).

Loan

Shareholders and third parties (a bank or an investment fund) may also lend money. It will then have to be agreed under which conditions the loan will take place – the amount, the interest, the repayment period, the possible grounds for calling in the loan, and the securities. You may also agree to subordinate a debt to other debts debts of the BV or to enable conversion of shares.

Securities

As a creditor you want to have certainty that your claim will be honoured. You may stipulate securities on goods or rights on the basis of which you can claim priority when seeking recovery if payment is not made. Securities are, for example, a mortgage right on immovable property, a pledge on goods such as machinery, inventory and stock, or on rights such as receivables, bank balances, products or intellectual property rights. These security rights must be established with the necessary formalities.

Hekkelman has extensive experience in the financing and securities arena. We can assist you in determining and drawing up financing and securities documentation. Please feel free to contact us for an exploratory discussion.