Commercial finance involves various financial transactions and arrangements that businesses undertake to obtain funding for their operations, investments, or expansion projects.
We can help with this here at Price and Kelway and here’s an explanation of the process and the role of a solicitor in such matters:
1. Initial Consultation and Legal Advice:
- We can provide legal guidance and advice on various financing options available to the business, such as bank loans, commercial mortgages, asset-based ending, or alternative financing arrangements.
2. Due Diligence and Risk Assessment:
- We can be instructed to act for the borrower, the lender, or both to conduct due diligence in order to assess the legal and financial risks associated with the financing transaction.
- We draft and review legal documents, including loan agreements, security documents, guarantees, and other contractual provisions to formalise the financing arrangement and to ensure that you are aware of and comfortable with the payment provisions and the associated risks.
4. Security and Collateral Arrangements:
- We can assist in structuring security and collateral arrangements to secure the lender’s interests and advise on the creation, registration, and enforcement of security interests, such as mortgages, charges, liens, pledges, or debentures, over assets owned by the borrower.
5. Loan Documentation and Completion:
- Our team can prepare and finalise loan documentation, ensuring that all legal formalities are completed, and the transaction is executed according to the terms of the financing agreement.
- We coordinate completion, facilitate the exchange of funds, and ensure that all conditions are satisfied.
