Finance & Loans

Our debt finance expertise

Whether you need working capital, COVID relief, or leverage to allow you to expand we have done it in the past. We know getting financing can be stressful, especially if personal guarantees are required by the lender. We are here to help you understand the terms and work with you in negotiating creatively.
Our team has a combined 15-year experience working for major banks and knows how to obtain concessions from credit officers. We have our internal process which is aimed at understanding your needs, your business’s cash flows and the security available. This allows us to negotiate aggressively, yet quickly.
Finance and Loans

Loan agreements

We only accept instructions from borrowers as we are usually conflicted otherwise. We know what the main negotiation points are and can advise you in plain terms what your negotiation room is and the implications of the terms you are agreeing to.
Most of the terms can be grouped into 1) economic, 2) practical, or 3) purely legal.

Economic terms are those that relate to interest rates, term to maturity, valuation, default rate provisions, and optionalities (such as profit participation either for the lender or you).

Practical terms are usually the i) conditions precedent, i.e. those that need to be satisfied before the loan is provided, ii) any repeating obligations, such as providing your accounts within certain timeframes, and iii) any financial covenants that need to be complied with that would give the lender comfort that the business is performing well enough to repay the loan.

Legal terms are mainly the Events of Default and enforcement provisions, as well as the security/guarantee provisions. Events of Default deal with the type of events that would allow either one of the parties (but usually the Lender) to claim the other party is in default of their agreement. After that the enforcement provisions would come into play and, depending on what the security package is, enforcing security over charged assets may commence even without the permission of the court.

Even though when taking out the loan the possibility of defaulting seems unimaginable, there is a chance that this might happen. In that case the security provisions are particularly important. The lender would have insisted in the most comprehensive security package but there are creative ways that you can satisfy the lender whilst avoiding significant personal exposure. If you want to read further about negotiating a loan agreement for your business click here.

How we can help

We can help you negotiate a more favourable loan agreement and go over the terms and the requirements with you. We look at LMA, LSTA and bespoke facility agreements. We advise in revolver or term loans. We have particular expertise in real estate finance having most recently advised on a £30 million commercial to residential conversion project.

We can also help with the applications for COVID financial relief such as the Coronavirus Business Interruption Loan, the Bounce Back Loan and the coronavirus Future Fund loan schemes.

 

If you want to discuss further with us please feel free to contact us.