Our specialist team can support both financiers and borrowers through the client take-on process. We can assist whether the prospect is an experienced user of finance facilities or a completely new to this area. We deal with all range of business sizes and situations, from standalone businesses to companies which are part of a larger group, where some or all are borrowers.
If you are a financier
We can assist you in key areas
- ensuring that the collateral you are relying upon is properly secured, thereby properly protecting your funding. Our advice in this area includes
- drafting guarantees, debentures and other specific asset charges;
- obtaining necessary consents from prior charge holders;
- subordination of directors loans or other creditors; and
- drafting and negotiating deeds of waiver, priority or inter-creditor agreements.
- supporting you at every step of the on-boarding process. This includes
- helping you to determine the structure of a facility and the security required;
- preparing, negotiating and agreeing the legal documents;
- advising on the execution process;
- ensuring your documents, and especially deeds, are executed correctly and enforceable;
- registering debentures and charges at the relevant registries such as Companies House and the Land Registry;
- dealing with specialist bills of sale registration, for example when the prospect is a sole trader or partnership. Importantly this offers the optimum security position in respect of such a business;
- reviewing a prospect’s key customer contracts or terms and conditions, for example, to advise asset based lenders on whether particular debts are suitable for assignment. We also review the terms and conditions of a prospect to see if any onerous clauses exist. Doing this avoids possible areas of future concern such as
- retention of title;
- liquidated damages provisions;
- set off and / or prohibition on assignment clauses.
- working with your underwriter’s requirements to ensure that any concerns are properly addressed. For example
- drafting and negotiating waivers of particular problem clauses of such contracts; or
- adjusting the core agreement to add necessary provisions to counteract risks that we may find;
- preparing bespoke set of terms and conditions for the prospect or client to use. Often where an asset based lender’s client or prospect has no, or inadequate, standard terms of business. Importantly this will assist the debt collection process at a later date It ensures the asset based lender has good title to the debt; and
- assisting assist with any queries an asset based lender’ may have where a prospect has acquired or is in the process of acquiring assets from an insolvent entity. Therefore avoiding common pitfalls and ensuring the right price is paid.
If you are a borrower:
We regularly advise borrowers looking to enter into new finance facilities. We can help you
- negotiate the documents you are asked to enter into. In other words, we can advise you whether the agreements are fair and reasonable. And whether they are market standard for the type of facility you are entering into.
- fulfil all the conditions precedent for funding. Our team will advise you on what you will need to do once the facility starts. This will ensure you fulfil the terms of any conditions subsequent to funding. Above all it stops you getting in to difficulty right at the outset.
- advise on the impact of any corporate security you have been asked to provide. In addition, our team can advise on the impact of any personal security requested form you as well.
- advise on the risks and benefits of the financial facility. This means your board and members can make an informed decision whether to enter into the facility or not. After that, if you decide to do so we can guide you through the process from offer to funding and beyond.
Whether you are a financier or a borrow looking for assistance, our expert team can help.