Commercial Lawyer Adelaide: What Does a Commercial Finance Lawyer Do?
Commercial finance lawyers specialise in handling the legal details associated with large financing transactions, from contract drafting and review, lender representation and agent/borrower representation services, as well as representation in any financial deals.
Our commercial finance lawyer Adelaide company assists companies, developers and not-for-profit entities seeking bond financing for shopping centers or office complexes and residential housing projects (both market rate and affordable using tax credits or alternative forms of financing), often including mezzanine financing deals for developers.
Working Capital Loans
Working capital loans differ from term loans in that their repayment terms tend to be short-term; typically lasting six months to two years, this form of financing allows business owners to fill funding gaps and meet payroll. They can also be used for one-off large purchases like purchasing equipment.
Commercial finance attorneys are invaluable when it comes to helping business owners secure financing for their venture. Before applying, it’s essential that business owners research each lender’s credit requirements and rates in detail before assessing whether their payments (daily, weekly or monthly) can be comfortably made.
Working capital loans offer quick cash injections to cover payroll, debt payments and restock inventory needs quickly. They help avoid a vicious cycle of “robbing Peter to pay Paul”, improving financial stability while simultaneously improving working conditions in your business. Available through alternative online lenders they are typically approved within hours if applied for.
Real Estate Loans
Companies looking to merge or acquire other businesses often require commercial financing in order to expand their operations, often using bank attorneys as advisors on structuring and negotiating these deals, and other financial arrangements such as security agreements.
Security agreements are legal documents that grant lenders an interest in assets offered as collateral against loans by borrowers, including property, investment securities, or accounts receivable. By protecting themselves through this contractual arrangement if their debtor fails to repay, lenders can seize these assets to recover losses more easily.
Commercial finance lawyer Adelaide offer invaluable help when it comes to real estate loans, especially bridge loans – short-term loans that enable borrowers to cover expenses between selling one property and purchasing the next. Since this process requires extensive paperwork and meeting loan requirements, it’s wise to consult an attorney.
Secured Loans
When businesses require large sums of money for specific purchases, secured loans are an ideal solution. Backed by assets the lender can seize in case of nonpayment – usually physical assets like property and vehicles as well as financial ones like stocks and bonds – secured loans typically come with lower interest rates than their unsecured counterparts.
Banking attorneys offer their clients advice in making efficient financial arrangements for such transactions and filing the appropriate documentation pertaining to security interests in assets correctly.
Commercial finance lawyers provide companies in many industries with working capital they need to get products out to market and turn a profit. A commercial finance attorney can advise clients regarding this as well as other issues within their industry, such as regulatory changes and changing economic conditions as well as emerging technologies that pose constant challenges to lenders and borrowers alike. Banking attorneys must be creative problem-solvers to find new paths toward meeting clients’ goals.
Bankruptcy
Many businesses require commercial loans in order to purchase property, pay payroll and inventory costs and more. If a payment goes into default and goes unpaid for more than 30 days, your lender could take legal action against you and may pursue legal proceedings against you.
Bankruptcy is a legal process where debts can either be reduced or discharged entirely, so commercial finance lawyer Adelaide who specialise in this area can help clients identify which option would work best for them.
At bankruptcy proceedings, courts review an applicant’s assets to assess if their debts should be discharged or liquidated and distributed back to creditors. Bankruptcy can be an extremely complex practice that frequently involves complex financial transactions; as a result, having experienced banking and finance lawyers to guide your transactions through is critical in meeting all applicable regulations and protecting both parties involved in each deal.
