Encumbrances on a Company: How to Check for Pledges and Registered Rights

Encumbrances and other registered rights can indicate that a creditor holds security over the company's assets, or that an attachment order has been registered. This information is relevant for credit assessments, acquisitions, and supplier control.

What Can Be Registered?

The Løsøreregisteret (Register of Movable Property) contains various types of registered rights, including pledges over operating equipment, inventory, vehicles, and receivables, as well as attachment liens. The type of security registered, the secured party, and the timing can be crucial for priority.

A registered encumbrance does not automatically mean that the company has payment problems. Voluntary pledges are common in bank financing. An attachment lien, however, is linked to forced collection and should be investigated more closely.

How Do You Check the Information?

Brønnøysundregistrene (The Brønnøysund Register Centre)'s search service for encumbrances and registered rights can be queried using an organisation number. Verify the correct legal entity and read the details in the extract. For real estate, use Kartverket (the Norwegian Mapping Authority)'s land registry, not the Løsøreregisteret.

How to Interpret the Findings

Look at the type, date, amount (where specified), the secured party, and whether the registered right has been deleted. Old or ordinary bank pledges must be assessed differently from recent attachment liens. Combine this with accounting data, liquidity, and payment information.

Encumbrances on Proffi

Proffi should retrieve data from an authoritative source, display active and deleted items separately, and state the control timestamp. The system must explain the difference between voluntary pledges and attachment liens and never make a legal priority assessment without a complete basis.