Financing and securities

Obtaining financing through creative legal thinking: it can be done!

Where, at first glance, it seemed “practically impossible” for a client to obtain funds from a bank, there turned out to be options. The case for which Mr Marcel Fruytier was responsible enabled his client to achieve her own entrepreneurial goals.

“Because, that’s what it should be about, also in legal advice,” says the visibly enthusiastic Fruytier. “Entrepreneurs too often run into a ‘No’ in their search for funding. We try – with all our expertise, creativity and inventiveness – to turn a ‘No’ into a ‘Yes’. We do so not only on the basis of all legal possibilities. Above all, we use our extensive network because nowadays you need to forge creative alliances to realise clients’ growth and prosperity ambitions. Entrepreneurs now understand that banks have more restrictions than, say, seven years ago, but entrepreneurs have not lost ambition. The chimney has to smoke. Growth is and remains the credo.”

Financing can make a company more successful

According to Fruytier, this particular case involved an entrepreneur who already owned one-third of a foreign company. He could take over the other two-thirds but that would require refinancing the company in its entirety. “In addition, he was about to win a large international order, knowing that this would enable new growth. Moreover, the market he operates in is an absolute growth market. This entrepreneur had to deal not only with hedging an (international) payment risk and aspects related to factoring and leasing but also, with the fact that the foreign bank – due to know regulations – had to part with the company. We deeply analysed the whole structure, working with the bank’s specialists.

To make a very long story short, we set up a new company in the Netherlands, which bought all the assets of the foreign company, and then also bought the shares. This created cash at the foreign company to pay the divorcing partners. The remainder that had to be paid was converted into a subordinated loan. As a result, everything fell exactly within the rules and my client was able to continue doing business. And: obtained the financing.”

The New Financing

Fruytier explains that you have to start seeing the bank as an ally. “You have to dare to look at things differently,” he says. “The bank is a networking party. And believe me: banks really do want to lend, but it just works differently now than it did a few years ago. Just call this The New Financing.” ABN AMRO was delighted with the creative approach of the Keizersgracht-based law firm. It was not only the Johnny Walker Award that could be presented, but Fruytier may soon also give a presentation on this creative construction within the bank. “That is a compliment,” he concludes. “Because that presentation allows us to further transfer our knowledge. And that’s good. After all, when you are allies, you want to learn from each other. But above all, we are satisfied that our client could now get on with what he is good at: doing business and seizing opportunities.”

Our specialist in entrepreneurial and financing issues is Marcel Fruytier

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