Financing and securities
Obtaining financing through creative legal thinking: it can be done!
Where, at first glance, it seemed “practically impossible” to obtain funds for a client from a bank, there still appeared to be options. The case for which Marcel Fruytier was responsible enabled his client to achieve her own business objectives.
‘Because that’s what it should be about, even in legal advice,’ says the visibly enthusiastic Fruytier. “Entrepreneurs too often encounter a “No” in their search for financing. We try – with all our expertise, creativity and inventiveness – to turn a “No” into a “Yes”. We don’t just do this on the basis of all the legal possibilities. We also make extensive use of our extensive network, because nowadays you have to form creative alliances in order to realise your clients’ ambitions for growth and prosperity. Entrepreneurs now understand that banks have more restrictions than they did, say, seven years ago, but they have not lost their ambition. The chimney has to smoke. Growth is and remains the credo.”
Financing can make a business more successful
According to Fruytier, this specific case involved an entrepreneur who already owned one-third of a foreign company. He could take over the other two-thirds, but then the company would have to be refinanced in its entirety. “In addition, he was on the verge of securing a large international order, knowing that this would enable new growth. The market in which he operates is also an absolute growth market. This entrepreneur not only had to deal with hedging an (international) payment risk and aspects relating to factoring and leasing, but also with the fact that the foreign bank had to part with the company due to certain regulations. We analysed the entire structure in depth, working together with the bank’s specialists.
To cut a long story short, we set up a new company in the Netherlands, which purchased all the assets of the foreign company and then also bought the shares. This provided the foreign company with cash to pay the departing partners. The remainder that had to be paid was converted into a subordinated loan. This meant that everything fell squarely within the rules and my client was able to continue doing business. And he obtained the financing.”
The New Financing
Fruytier explains that you have to see the bank as an ally. ‘You have to dare to look at the matter differently,’ he says. “The bank is a network player. And believe me: banks really do want to grant loans, but it just works differently now than it did a few years ago. Call this The New Financing.” ABN AMRO was delighted with the creative approach of the Keizersgracht-based law firm. Not only was the Johnny Walker Award presented, but Fruytier will also soon be giving a presentation on this creative construction within the bank. ‘That’s a compliment,’ he concludes. ‘Because that presentation will allow us to further transfer our knowledge. And that’s a good thing. After all, when you’re allies, you want to learn from each other. But above all, we are pleased that our client was able to continue doing what he does best: entrepreneurship and seizing opportunities.’
Our specialist in business and financing issues is Marcel Fruytier