WHY USE A TRUSTEE | Alpha Trustee Servic

WHY USE A
SECURITY TRUSTEE?

Appointing a Security Trustee is essential in a fundraising transaction as it ensures adequate legal protection is provided to Investors. Not only does it cover assistance in scenarios where the Fundraising Company may fall into default, but it also ensures a level of due diligence is maintained from inception for the benefit of all parties involved.

THE ROLE OF A SECURITY TRUSTEE IS MULTIFACETED

The Security Trustee is responsible for ensuring that the agreed-upon security interests are correctly created in the form of a Debenture. Furthermore we oversee the relevant filing and registration of the Legal Charge on Companies House to effect the Debenture. We also work with the appointing company to ensure the Debenture and any other obligations imposed by the Security Trustee are complied with throughout the term of the Fundraising Instrument.

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DUE DILIGENCE

The Security Trustee ensures that the assets pledged by the Fundraising Company are legally binding and enforceable. We implement thorough due diligence processes from inception and throughout the fundraising process.

PROTECT INVESTORS
RIGHTS

The Security Trustee monitors and manages the Security over the Fundraising Company. It acts as an intermediary between the Company and the Investor, ensuring that all parties comply with the terms of the Debenture. If any issues arise throughout the lifecycle of the Fundraising Instrument, the Security Trustee will take the necessary steps to protect the investor by enforcing the terms of the Debenture.

CREATE A STREAMLINED PROCESS

The trustee assists with certain administration aspects. By delegating the role of securing, managing, and enforcing security interests to a Trustee, lenders have more time and resources to focus on their core business activity.

To summarise, the role of the Security Trustee is to safeguard the interests of lenders by independently holding, enforcing, and managing security interests on behalf of multiple lenders who have extended credit to a borrower or a group of borrowers. The Trustee ensures that the security interest is properly created and enforced, which provides certainty to the lenders and mitigates their credit and operational risk.

8 REASONS TO ENGAGE A
SECURITY TRUSTEE

IMPROVED

SECURITY

Appointing a Security Trustee enhances the security and enforceability of security interests by ensuring that borrowers fulfil their obligations to lenders.

RISK

MITIGATION

Security Trustees minimiSe risks associated with lending and invest in products on behalf of the lenders to diversify portfolio risk.

EXPERIENCE & EXPERTISE

Security Trustee service providers offer a team of professionals with extensive experience in financial markets, ensuring the effective execution of complex transactions.

INDEPENDENCE

Security Trustees are independent third-party agencies, protecting both the lender and borrower from any potential conflicts of interest that may arise during the course of a transaction.

ADMINISTRATION & REPORTING

The role of a Security Trustee goes beyond enforcement. They can help in the administration of security interests and provide reporting on the same.

EFFICIENT

ENFORCEMENT

Security Trustees have the necessary expertise to manage enforcement of security interests effectively, avoiding delays, and minimising losses.

BETTER BORROWER

RELATIONSHIP

Security Trustees help to maintain an amicable relationship with borrowers even while carrying out enforcement actions. This is beneficial for long-term business goals.

EXPERT

ADVICE

Lenders can benefit from the advice and guidance of Security Trustees on matters relating to security enforcement, management, and creation.

WHY USE A SECURITY TRUSTEE?