Commercial financing

Commercial financing

Commercial financing provides businesses with essential capital to support their operations, expansion, and strategic goals. Whether through traditional bank loans, lines of credit, or alternative financing options like asset-based lending or invoice factoring, companies can access the funds needed to manage cash flow, purchase equipment, expand facilities, or invest in new opportunities. Commercial financing solutions are tailored to meet the unique needs of businesses across various industries. Commercial financing is typically extended as a secured loan, although some financing can come in the form of unsecured debt or equity.

Commercial financing is often addressed together with the purchase of a business in private M&A transactions. Most purchasers are funding their acquisition via commercial acquisition financing.  Read more about Commercial financing of purchase here.

In commercial financing, lawyers play a pivotal role in navigating the legal complexities of securing funding for business operations.  Lawyers negotiate the terms and conditions of commercial financing agreements on behalf of their clients, advocating for favorable terms while mitigating risks. They draft loan agreements, promissory notes, security documents, and other legal instruments that define the rights and obligations of the parties involved, including interest rates, repayment schedules, collateral requirements, and covenants. Lawyers oversee the closing process of commercial financing transactions, ensuring that all legal formalities are completed, documents are properly executed, and funds are disbursed according to the agreed-upon terms. They coordinate with lenders, borrowers, title companies, and other stakeholders to facilitate a smooth and efficient closing, minimizing delays and ensuring compliance with legal requirements. Contact one of our commercial financing lawyers to discuss whether traditional commercial lending may be the suitable means of financing for your corporation.