There are many forms of security over assets of a company in France. The first question to be asked is to whom do the assets belong? This preliminary question is important as French law pays particular attention to the corporate interest of the legal person providing the security. Why is the security being given and in what way is it in the corporate interest? Should a subsidiary provide security within the framework of a facilities agreement to which the parent and other group companies are parties?
Security can be taken, inter alia, over shares in a French company, or over its goodwill and assets or inventory.
Factoring or assignments of receivables are common in favour of banking or financial institutions.