NOTARIAL BONDS - Can they save your business?
Does your business sell goods/services on Credit? Does your business buy goods/services on Credit? How do you secure that Risk? In these COVID times, the security that a creditor will hold will be of EXTREME importance. Notary Public Debtors may encumber their immovable property with mortgage bonds or cede various rights in favour of creditors as security (e.g. pledges, cessions, etc.). There is also Credit Insurance or Factoring that may be used to "secure" the debt. However, a form of security that is often overlooked is notarial bonds. 1. BENEFITS OF NOTARIAL BONDS Commercial convenience Debtors generally have easier access to movable property, as opposed to immovable property. Many debtors have movable property that can be used as security but they are unable to “unlock” the value of these movables because most lenders only want security over land. A lender who is willing to take security in the form of a notarial bond over movables (which is just as secu
