The pledge over business assets is not a regular choice for lenders as it is not governed by the 2005 law on financial collateral arrangements.
However, this pledge allows businesses to secure loans by offering movable assets as collateral - it's a win-win, offering lenders security and businesses access to funds, so it shouldn't be disregarded!
This year our team has increasingly assisted clients with putting in place such pledges and obtaining the necessary approvals of the Ministry of Finance and the CSSF in this respect.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
