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Financing (Banking)

Who Needs This Service?

• Anybody who will be borrowing money from a bank whether it is for personal reasons (like buying something), to expand your business or to purchase a business.
• Anyone who will be taking on new partners or selling their business.

Learn Something About The Law

There are 2 main sources of financing: Debt and Equity.

• Debt

  This is money that you receive but must pay back over time, usually with interest. The most common situation is a bank loan. In order to give you the loan, the bank will want some security to know that they will be paid back. There are many types of security; a common example is a mortgage of your home.

• Equity

  This is money that is put into the business in return for an ownership position. The investor will give money to the company in return for shares that entitle them to be paid back as the company makes a profit. The Business Corporations Act requires that appropriate director or shareholder resolutions are executed (Corporate Transactions) in order to validate these agreements.

To Do:

1. Negotiate your deal terms with the bank/lender.
2. Put together for me all of the important information that you think will be required in order to do the financing transaction. This will include providing me with the deal terms, names of all parties and your Company Minute books.

Did you Know?

Banks/investors lending to a corporation will require the company minute books to be current and all requirements under the Business Corporations Act to have been fulfilled before they will lend you money.

Contact Us

For more information about this and other financing/bank related transactions, please give us a call or email.