Most businesses need external financing at some point. While securing finance is often the focus, the terms matter enormously. Lending arrangements create long-term obligations that can constrain your decisions for years.
"We represent borrowers, not banks. Our role is to ensure you understand what you are committing to."
Structure, term, pricing, covenants, events of default, and security requirements. Every clause affects your flexibility. A covenant breach six months from now could give the bank power you didn't anticipate. Many clients are surprised at what constitutes a breach.
Security Documents
GSA, specific security, personal guarantees, cross-guarantees. Understanding what you are pledging and what can be enforced against you personally.
General Security Agreement (GSA)
Purchase security agreements
Specific security agreement
Property mortgages
Personal and cross-guarantees
Guarantee Risk
Understanding your personal exposure, negotiating limits where possible, and knowing when guarantees can be released. Directors often don't realise the full extent of what they're signing.
Different financing, different risks.
Each type of business financing has its own documentation complexity and risk profile.
Acquisition Finance
Borrowing to purchase a business or assets. Time-sensitive, requiring coordination between multiple parties.
Often complex
Development Finance
Property development or capital projects. Staged drawdowns, progress certifications, specific security, gradual security release.
Multiple lenders, intercreditor arrangements. More complex documentation for significant transactions.
Multi-party
Banking Terminology
What the jargon actually means.
Understanding these terms is essential before you sign any lending documentation.
Covenants
Ongoing obligations
Ongoing obligations you must meet. Interest cover ratio, leverage ratio, debt service cover. Breach can trigger default provisions.
Events of Default
Acceleration triggers
Circumstances allowing the bank to demand immediate repayment. MAC clauses, cross-default, misrepresentation, change of control.
PPSR Registration
Security perfection
The Personal Property Securities Register records security interests. Banks register here to establish priority over other creditors.
Priority
Who gets paid first
The order in which creditors get paid if things go wrong. First-ranking security gets paid first. Your position relative to others matters.
Subordination
Ranking agreements
Agreements determining which creditors rank ahead. Relevant when shareholders have made loans or there are multiple lenders.
Material Adverse Change
MAC clauses
Allows the bank to call the loan if your circumstances change significantly. Often broadly drafted and favours the lender.
How We Help
Document Review
The First Step
We review facility letters, loan agreements, security documents, and guarantees. We explain what each provision means and identify terms that could cause problems.
Negotiation
Where Possible
While banks have standard forms, some terms can be negotiated. We identify which provisions are worth pushing back on and how to approach the conversation.
Transaction Coordination
Alignment
Financing often supports a larger transaction. We ensure the financing documentation aligns with the transaction timeline and requirements.
Solicitor Certification
Authority & Validity
Banks require solicitor certificates confirming the borrower has signed all required resolutions, and that the security is valid. We provide these as part of the financing process.
Security Perfection
Registration
We ensure security documents are properly executed and registered. A GSA not registered on the PPSR provides no protection. Bank mortgages must be registered on the property title.
Related Services
Financing connects with other needs.
Your lending often relates to property purchases, business structures, or asset protection.
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Business Structuring
Getting your structure right for lending. The right entity makes financing easier.
Any existing documents relevant to your situation: company records, contracts,
agreements you are considering, or details of issues you are facing. But if you
are just at the thinking stage, that is fine too.
Ready to get started?
We're here to help. Get in touch for clear, practical advice.
