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Collateral-Backed Funding for Firms in Bangladesh

What Does Collateral-Backed Funding Cover?

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HRBD helps companies in Bangladesh raise funding against assets they already own, through banks and NBFIs licensed by Bangladesh Bank. Collateral-backed funding is borrowing secured against land, buildings, machinery, stock, fixed deposits or receivables. HRBD prepares the security case, coordinates valuation and files the charge with RJSC, while the lender makes the credit decision.
✓What happens after you book an asset review: one HRBD adviser reviews the assets you can pledge and the amount you need before any lender is approached.
✓Covers assets held in Bangladesh: land and buildings, plant and machinery, stock, fixed deposits and receivables.
✓The lending decision, the rate and the final terms belong to the bank or NBFI, never to HRBD.
✓Companies with no assets to pledge are served through HRBD unsecured and working capital funding instead.
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Which Assets Can HRBD Help You Pledge?

HRBD works with five kinds of asset that lenders in Bangladesh commonly accept: land and buildings, plant and machinery, stock, fixed deposits and receivables. Each asset is pledged through a different legal form of security, so HRBD prepares a different document set for each before any lender sees the file. The table maps every asset to its security form and to the papers HRBD prepares. A wider overview of secured lending practice in Bangladesh is set out in the Chambers Debt Finance 2026 guide for Bangladesh.
Assets HRBD helps companies pledge in Bangladesh and the security form each takes.
Asset pledgedForm of securityDocuments HRBD preparesUsually suits
Land and buildingsRegistered mortgageTitle deeds, mutation records, valuation reportAsset-rich local SMEs
Plant and machineryHypothecationPurchase invoices, import papers, valuation reportManufacturers and exporters
Stock and inventoryHypothecation of stockStock statements and warehouse recordsTraders and manufacturers
Fixed depositsLien on the depositDeposit receipt and lien letterCompanies holding cash reserves
ReceivablesAssignment of receivablesBuyer contracts and invoice ledgerExporters with confirmed orders

Which Firms Borrow Against Their Assets?

HRBD arranges collateral-backed funding for three kinds of business, and each receives a different service because each arrives with a different asset base and rulebook. Foreign-owned companies need a structure Bangladesh Bank and BIDA accept, local SMEs need their assets to carry a short cash-flow record, and exporters need one security pack across several assets. The three cards below state what each receives from HRBD.
Finance team of a foreign-owned company in Bangladesh reviewing a secured funding plan

Foreign Subsidiaries & JVs

Subsidiaries, joint ventures and branch offices borrowing in Taka against assets they hold in Bangladesh. HRBD confirms the compliant route under Bangladesh Bank and BIDA rules first, prepares the security documents in the name of the Bangladesh entity, and reports each stage to the parent company.

Local SME owners reviewing financial statements and asset papers for a secured business loan

Asset-Rich Local SMEs

Local companies that own land, buildings, machinery or stock but have a short or uneven cash-flow record. HRBD matches each asset to lenders that accept it, prepares lender-ready financial statements alongside the title and valuation papers, and explains every security term in plain English before the company signs.

Exporter and lender reviewing a secured facility contract backed by plant and receivables

Exporters & Manufacturers

Factories and exporters raising larger facilities against plant, machinery, stock or confirmed buyer receivables. HRBD builds one security pack across several assets, coordinates the valuation of plant and stock with the lender, and tracks the charge filing with RJSC so the facility is not held up at drawdown.

Our Commitments When Assets Are Pledged

HRBD makes four commitments on every collateral-backed funding file, and each one names a concrete obligation rather than a promised outcome. Three are shown in the cards below. The fourth is continuity: the same adviser stays on the file after drawdown and files the satisfaction of the charge with RJSC once the loan is repaid. None of these commitments replaces the credit decision of the lender.
Accountability icon for one named HRBD adviser on each funding file

Accountability

One named HRBD adviser owns the file from the first asset review to drawdown. Every document sent to a lender is checked by that adviser first, the checklist is shared with the company, and the same adviser answers every lender query, so no request is passed between teams.

Jurisdiction icon for Bangladesh Bank, BIDA and RJSC compliance checks

Jurisdiction

Every structure is checked against Bangladesh Bank and BIDA rules before submission, so a foreign-owned entity only pursues routes it can actually use. The charge is filed with RJSC under the Companies Act 1994, s. 159, and the filing record is copied to the company.

Confidentiality icon for asset and financial documents shared with approved lenders

Confidentiality

Title deeds, valuations and financial statements go only to lenders the company approves in writing. Each submission is logged in the file with the date and the lender name, so the company can see who holds which document and nothing reaches an unnamed lender.

Which Route Will HRBD Recommend?

HRBD recommends a route at the first asset review, before any lender is approached. Secured borrowing fits a company that owns assets a lender accepts but lacks the trading history an unsecured lender wants; unsecured borrowing fits a company with steady cash flow and no assets to pledge. The table shows what HRBD weighs when it makes that recommendation.
What HRBD weighs when recommending secured or unsecured borrowing.
What HRBD weighsSecured (collateral-backed)Unsecured
What the lender relies onThe pledged asset and its valueCash flow and credit record
Main documentsTitle papers, valuation, charge filingFinancial and bank statements
Filing with RJSCCharge filed within 21 daysNo charge to file
If the loan is not repaidLender can enforce against the assetLender claims as a general creditor
Usually suitsAsset-rich firms with short track recordsFirms with steady cash flow

HRBD recommends pledging assets when they are the strongest thing the company can show a lender; otherwise HRBD routes the file to unsecured funding.

  • Secured route
  • Assets held in the company name
  • Clean title and valuation papers
  • Need larger than cash flow supports

HRBD recommends this route when the company owns land, buildings, machinery, stock or deposits in its own name, the title papers are clean, and the need is larger than cash flow supports. Foreign-owned entities can start here, because the asset carries the credit case while trading history builds.

  • Unsecured route
  • Steady sales and bank record
  • Short-term or seasonal need
  • Assets already pledged elsewhere

HRBD recommends this route when the company has a steady record of sales and bank transactions, the need is short term, or the assets are already pledged elsewhere. HRBD then handles the file through debt and working capital funding, which compares term loans and credit lines.

How Does HRBD Arrange a Secured Facility?

HRBD arranges a secured facility in three stages, and the company approves each stage before the next begins. The table lists the records produced at every stage and the authority involved, and the three cards below describe the work in order. Charge registration with RJSC sits in the final stage, because a charge not filed within 21 days of its creation is void against the liquidator and other creditors of the company (Companies Act 1994, s. 159).
Stages of a collateral-backed funding file and the records each produces.
StageWhat HRBD doesRecords producedAuthority involved
1. Review your assetsChecks title, ownership and existing chargesAsset schedule and funding need noteCompany board
2. Prepare the packShortlists lenders and coordinates valuationValuation report and security documentsBank or licensed NBFI
3. File the chargeFollows sanction and files the chargeCharge particulars filed and sanction letterRJSC and the lender

1

Review Your Assets

HRBD lists every asset the company can pledge, checks title papers and ownership, and searches the RJSC register for existing charges. The review ends with a written note of the amount sought, the assets offered and the lenders likely to accept them, which the company approves before any lender sees the file.

2

Prepare the Pack

HRBD shortlists banks and NBFIs licensed by Bangladesh Bank, coordinates the valuation of land, plant or stock with a valuer the lender accepts, and assembles the security documents. Foreign-owned companies also receive a note on the Bangladesh Bank and BIDA route before anything is submitted.

3

File the Charge

After sanction, HRBD reviews the security documents with the company, files the particulars of the charge with RJSC within the 21-day period, and follows the lender until the facility is drawn down. When the loan is repaid, HRBD files the satisfaction of the charge so the asset is released.

Guides for Pledging Business Assets

These HRBD services sit beside collateral-backed funding and are used before or after a secured facility. Each one either prepares the records a lender reads or looks after the assets once they are pledged. None of them is needed on every file; the adviser names the ones that apply at the first asset review, and each link below opens the full scope of that service.

Pre-Lender Due Diligence Review

Organises legal and financial records before a lender reviews them, so gaps in title, contracts or accounts surface before submission rather than after it. Lenders read the same records during their own credit review, and a file that has already been checked moves through that review with fewer queries.

Lender-Ready Financial Statements

Brings books and financial statements to the standard a bank credit team expects before a secured application is made. Clean statements matter even when an asset secures the loan, because the lender still checks that the company can meet each repayment from its own trading.

Asset Management After Drawdown

Tracks pledged and unpledged assets after drawdown, so the security stays insured, recorded and in the condition the lender expects. When the loan is repaid, the same records support the satisfaction of the charge with RJSC and release the asset for future borrowing.

What Do Firms Ask HRBD Before Pledging?

These are direct answers to the questions finance teams ask before pledging company assets through HRBD. The first sentence of each answer is the answer itself. Anything the list does not cover is settled at the first asset review, where the adviser confirms the assets, the lenders and the documents before any work begins.

What is collateral-backed funding?

Collateral-backed funding is a business loan or credit facility secured against assets the borrowing company owns. If the loan is not repaid, the lender can enforce against the pledged asset. HRBD arranges collateral-backed funding in Bangladesh with banks and licensed NBFIs, and HRBD does not lend the money itself.

Which assets will HRBD help us pledge?

HRBD works with land and buildings, plant and machinery, stock, fixed deposits and receivables, the assets lenders in Bangladesh commonly accept. Each takes a different security form: a mortgage, hypothecation, a lien or an assignment. HRBD checks which lenders accept the assets a company actually holds before any application is made.

Does HRBD lend the money or hold the assets?

No. HRBD neither lends nor holds any asset. The bank or licensed NBFI lends and takes the security, and the lender alone decides whether to approve. HRBD prepares the security case, coordinates valuation, files the charge with RJSC and follows the file until the facility is drawn down.

Can a foreign-owned company pledge assets?

Yes. A foreign-owned subsidiary, joint venture or branch can pledge assets it holds in Bangladesh, within Bangladesh Bank and BIDA rules. HRBD confirms the compliant route before any lender is approached, prepares the documents in the name of the Bangladesh entity and reports each stage to the parent company.

What happens after I book an asset review?

  1. An HRBD adviser reviews the assets offered and the amount needed, then confirms the route in writing.
  2. HRBD shortlists lenders that accept those assets and coordinates the valuation.
  3. HRBD prepares the security documents for the company to approve before submission.
  4. HRBD files the charge with RJSC and follows the lender through to drawdown.

Does HRBD handle the RJSC charge filing?

Yes. HRBD files the particulars of the charge with RJSC and tracks the deadline, because a charge not filed within 21 days of its creation is void against the liquidator and other creditors of the company. The loan stays payable, but the lender would lose its secured position.

How long does a secured facility take?

The time depends on the asset, the lender and how complete the title papers are. Land and buildings need a title check that a fixed deposit lien does not, and valuation adds a further stage. HRBD gives an indicative timeline after the first asset review rather than a fixed promise.

How is our financial information handled?

Title deeds, valuations and financial statements go only to lenders the company approves in writing. HRBD logs each submission in the file, so the company can see which lender received which document, and nothing is shared with a lender the company has not named.

Can HRBD help with an existing secured loan?

Yes. HRBD can review an existing secured facility, compare it with other lenders and coordinate a switch if the company decides to move. A switch means the old charge is satisfied and a new charge is filed with RJSC, and HRBD handles both filings for the company.

Can HRBD guarantee a lender will approve?

No. The lending decision belongs to the bank or NBFI, and a lender can decline even a strong security case. HRBD strengthens the file by checking title, valuation and documents before submission, but approval, the rate and the final terms are always set by the lender.
Reviewed by Romana Aktar, Head of Compliance, HRBD
Compliance review of the Bangladesh Bank, BIDA and RJSC references on this page. HRBD arranges collateral-backed funding and is not a lender.
Statutory source: the Companies Act 1994, s. 159, on registration of mortgages and charges. Regulators named on this page: Bangladesh Bank, the Bangladesh Investment Development Authority (BIDA) and the Registrar of Joint Stock Companies and Firms (RJSC).

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