What is an enterprise mortgage?

A mortgage may be registered on the movable property belonging to the enterprise of a trader recorded in the Finnish Trade Register, and the property may be pledged as a security for a debt, without transfer of possession.

Enterprise mortgages (also called business mortgage or floating charge) apply to fixed, current and liquid assets belonging to the enterprise of the trader. Fixed assets comprise for example machinery, equipment, trademark rights, rights to company names, and other special rights. Current assets comprise such things as raw materials, consumables and finished products and goods. Liquid assets comprise for example cash in hand, receivables and investments.

Enterprise mortgages do not apply to property on which a mortgage may be registered under some other law.

Enterprise mortgages do not prevent the transfer and use of the mortgaged property in the manner called for by the regular exchange of goods or necessary replacement of property belonging to enterprise activity, or by other normal enterprise.

An enterprise mortgage is valid without renewal until it is redeemed.

Go to a more detailed description of enterprise mortgages.

Enterprise mortgage affairs

The Finnish Patent and Registration Office handles, in a centralised manner, enterprise mortgage affairs in Finland and keeps a register of enterprise mortgages.

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Latest update 15.07.2020