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Have a new source of financing with your stock, a strategic tangible asset?

ACTIF TANGIBLE

Did you know that your stock, a strategic tangible asset, is a powerful financial lever for the development of your company? However, it is under-exploited. Moveable assets are similar to raw materials, goods and finished products. At Chetwode, in collaboration with ACTENE, we are experts in inventory financing and we propose an offer adapted to manufacturers and distributors.

In this article, we have chosen to talk to you about inventory, a strategic tangible asset, through the prism of Chetwode’s expertise. This article is the continuation of the publication made last month on production assets.

Jean-Paul Lachaud, our partner at ACTENE, an inventory financing consultancy, explains in this article how to value your inventory in the context of financing.

1. What is the difference between tangible and strategic tangible assets?

Tangible assets are the visible and tangible assets of your business. These are your stocks, your equipment and your buildings.

Each company, depending on its activity, its organisation and its business model, has tangible assets of a strategic nature, including certain stocks.

2. What is inventory financing?

Inventory financing is an alternative to traditional bank financing. It is often little used, and is not integrated into a financial package. However, it is rapidly operational. It can be offered as a guarantee to reassure future creditors (commercial banks or private investors) for a possible fund-raising.

This type of financing involves a credit facility for which the stock is taken as collateral by the creditors. It can be used for short or medium term credit.

Eligible companies are industrial or commercial companies whose future EBITDA is able to satisfy all their debts.

Inventory financing generates direct costs related to the credit and indirect costs related to the management of the guarantee.

But the question is, how can your company benefit from its stocks through our support?

3. How to value your stock, a strategic tangible asset, to obtain financing with Chetwode?

What does Chetwode offer?

Chetwode is a specialist in inventory financing with the engineering support of ACTENE, an expert in inventory financing.

We raise new debt for your company from private investors who are guaranteed either by a pledge with delivery (intervention of a third party pledgee) or by a trust (purchase of the stock by Chetwode Inventory Services).

We act on non-perishable and merchantable stock where the company is in full ownership and for an amount in excess of €10m.

How does the funding project work?

We select the stocks that we believe are most likely to reassure creditors and not to constrain companies in their daily operations. We couple this analysis of strategic stocks with the financial analysis.

The minimum financing will be 10 million euros. The beneficiary companies are located in France, Spain, the Netherlands, Germany, Belgium and Italy.

An example of stock financing projects

We structured and raised a debt of several tens of millions of euros for a French food retail group, Casino, from a British creditor partner.

This additional line of credit allowed Casino to overstock basic foodstuffs in times of shortage and inflation.

At Chetwode, we can add value to your stocks and enable you to obtain financing. Our experts take the project from financial analysis and stock analysis through to contract regularisation and release of funds. Contact us and we will be happy to help you.

Jean-Paul Lachaud

Jean-Paul Lachaud, an agricultural engineer, and after 5 years’ experience as a development manager in the agri-food industry, then as a business manager for BNP Paribas, and finally as a regional delegate for Eurogage, Jean-Paul created his own structure, ACTENE, specialising in the search for financing by mobilising stocks. Jean-Paul is the Chetwode representative for the Auvergne-Rhône-Alpes / Bourgogne-Franche-Comté region.

The press review of industrial financing

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