Ingenico

Secure Sales Through Security Interests!

Philippe McVean – Treasurer & Credit Manager

A leading multinational group in the market for payment and secure transaction solutions, Ingenico is a company that ships more than 2 million terminals worldwide each year. We take a look at the key developments in security interests law with Philippe McVean, Group Treasurer & Credit Manager.

What is the benefit for a creditor of relying on security interests?

Philippe McVean: A company holding security interests enjoys a preferential right over other creditors, which constitutes a real privilege. Security interest law, in particular, helps mitigate the uncertainty surrounding enforcement measures, which are not always effective in the event of a debtor’s default. The expertise of the firm Cabinet ARC can be very useful in advising on the establishment of these security interests.

What are the benefits to your company of holding liens or security interests in a business or receivables?

P.McV: Our company does not use collateral, as we have our subcontractors manufacture the terminals, which are then distributed to banking partners or retailers. We therefore secure payments in advance. However, we do use collateral for companies with limited financial resources. When we open a customer account, we verify the customer’s creditworthiness. If it is unsatisfactory, we use collateral, which allows the customer to avoid a cash advance. But the use of collateral is only possible with our French partners. With our foreign customers—who make up the majority of our client base—we must find other solutions: uncollectible letters of credit, standby letters of credit, interest-bearing deposits, etc. We must be resourceful and innovative to strike the right balance between revenue growth and the risk borne by the company.

Are you satisfied with the changes brought about by the reform of security interests law?

P. McV: The reform of security interests law is a step in the right direction. The key is to continue to ensure the security of commercial relationships so that business can grow under the best possible conditions.