FAQ

What is a property complex mortgage?

The pledging of the property complex is a relatively new and not widely used means of security in the Lithuanian financing market, but it is an excellent alternative means that allows a small or medium-sized business to borrow without having any real estate that could be used to secure the financing transaction.

In the case of pledging of a property complex , the company's assets consisting of movable property, such as stocks, equipment, claim rights to receivables or the like, are pledged. Although the composition of the asset complex is constantly changing , the minimum maintenance value determined by FinoMark must be maintained throughout the contract period.

The main advantage of this collateral is that if the project owner becomes insolvent, FinoMark, as a representative of the investors, is not included in the list of pending creditors. A foreclosure is directed against the subject matter of the primary mortgage, such as inventory, account balances, receivables, or other property held by the project owner.

Posted by
Emilija Poškonienė
Updated at 2024-07-25
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