Your financial ally at all times
This type of trust is created primarily to provide legal security to parties who have extended loans or financing, because it serves as a mechanism for receiving and administering cash flow from collection rights or accounts receivable (payments from contracts signed between the borrower, as service provider, and its clients). The main trustee’s main responsibility is to make payments out of the trust to repay the loans or financing.
Benefits
- The cash flow from collection rights or accounts receivable is received directly by the trustee, in the trust’s bank account, without going through the borrower’s bank account; so the trustee is primarily responsible for channeling the funds received toward repayment of the loan or financing.
- Acts as a secure and transparent source of repayment of loans or financing.
- The electronic platform enables our clients to monitor the funds received in the trust account in real time, as well as the loan payments made out of the trust.
