Loans and Financing
Loans and financing are critical to an organization’s growth and continued success. Finding that financing in any economic climate can be a challenge. Whether you are looking for start-up funds, capital to expand or additional funds that will allow your organization to hold on through tough times, there are programs and individual investors that may be available to you.
In each transaction, whether you are the lender, borrower or any other participant in the transaction, you should have an attorney involved that will represent your interests.
The legal documents generated in any financial transaction determine the terms and conditions that organizations and their key players will need to abide by. They are binding and should be carefully considered as your organization makes critical decisions.
A business loan may require collateral as well as guarantees and limitations that all parties should be aware of. Such transactions can be highly complex and include multistate or international interests as well as secured and unsecured creditors (secured creditors have rights in a security interest or form of collateral; unsecured creditors have no such special rights).
Your attorney will need to have good negotiation skills and be detail oriented. Strong legal drafting skills are also key since these contracts bind parties for years. The relationship between you and your attorney should be one that lets you feel comfortable calling and relying upon them. The stronger the relationship you develop, the better so their understanding what will work for you and what will not will be a key issue. Working with companies under financial distress can be complicated and challenging so your attorney will also require a good business sense, be practical, and be able to invest time and resources wisely.