The banking world has been through an unprecedented state of change over recent years and we are seeing a number of situations where banks are looking to end relations with borrowers with little notice. Often minor technical breaches of covenants in funding agreements are cited as the reason.
Should such a situation arise, borrowers are left with very little time to refinance to avoid losing their assets. Kennedys can help you before, during and after refinance by:
- Undertaking detailed due diligence
- Liaising with the lenders and their solicitors
- Assist in structuring new lending to assist borrowers to re-finance where under pressure from existing lenders
- Proceeding to a prompt drawdown and settlement of existing charges
- Providing legal advice on the content of the finance documents and conditions of lending
- Review the security being offered, identifying potential issues and providing solutions to ensure that the property being used as security has a good and marketable title
Getting ready for Refinance
As a result it is key to risk management to ensure you are “Ready for Refinance” and in a position to move funders quickly. Taking this proactive step is a small investment that can reap huge dividends later by putting you on the front foot when it comes to refinancing.
Wider business benefits of being ready for re-finance include:
- Being ready to proceed as soon as the offer in principal is received
- Reduce the time from offer to completion of the loan facility
- More cost effective due to being organised with the necessary information
- All title issues can be addressed and rectified before the offer is made, making the property more suitable to use as security
The Refinance transaction
As part of a transaction involving the re-financing of indebtedness by replacing existing lenders with new lenders, the new lender will require the business, and sometimes its key managers, to receive legal advice on the content of the finance documents.
As well as managing the transaction and responding to all enquiries made by the old lender and the new one, our Banking and Finance team will be able to highlight the risks and provide high-level advice, in satisfaction of any conditions of lending.
Our extensive experience in the Refinancing arena provides Kennedys with the opportunity not only to assist clients with the best legal support for the transaction, but also to look at the wider commercial opportunities and provide strategic advice throughout.
Incisive, direct and effective advisers
You can find out more details about our legal services by getting in touch via firstname.lastname@example.org, calling us,or using the contact form.