Financial trusts are a very important part of the many opportunities that trust contracts offer. It is a financial tool with which companies can separate some of their assets from their assets, and thus, have the possibility of making them grow, together with a trustee for their administration.
The success of the financial trust lies in the fact that a group of SMEs can join and associate to reduce the risk and costs of the operation. And it is used to transform illiquid assets into liquid assets. ´
In this type of trust, as in any other, all assets contributed to the agreement are exempt from the action of any creditor. Thus, any company that has a good business perspective could access a financial trust, even if it has financial difficulties.
Financial trust benefits:
– It makes it possible to transform non-liquid assets into liquid assets.
– All assets contributed to the trust are free from any action by the company’s creditors.
– Get the separation between the company and its trust balance.
– It allows companies, especially SMEs, to access better financing options, even if they have financial difficulties.
In conclusion, the financial trust is one of the best financial tools, which helps small companies to find better sources of financing, reduce costs and consequently reduce risks.