As a general rule, a lender does not have the inherent right to require prepayment of a loan. Therefore, the facility agreement must define circumstances or events that, if they did, would grant that right to a lender. These circumstances or events are generally referred to as delay events and vary for individual transactions and must be adjusted and negotiated accordingly. They are usually heavily negotiated. At Else Solicitors, we can advise you on whether there is room for negotiation under the terms of the agreement that has been proposed to you. We can also give you a clear and complete explanation of the terms and conditions of the loan agreement. Guaranteed loan contracts are designed to build assets as collateral against advanced money. If the loan is not repaid, the assets can be confiscated. They may also include advance information if the borrower is interested in prepaying the loan. Many borrowers are concerned about advances and you would be wise to include a clause in your credit agreement that talks about advance options, if any. If you allow a prepayment, you must include this information and details if they are allowed to pay all or part only in advance and if you charge a down payment fee if they wish. If you charge a down payment fee, you need to state in detail how much it will be.
Traditionally, lenders require that a percentage of the principal be paid in advance before they can pay the balance. If you do not authorize the advance, you must state in detail that this is not permissible, unless you, the lender, have given written permission. We can offer protection for loan contracts for unsecured loans or secured loans and related fees, which are taken as collateral based on several years of experience. We can take precautions to pay fees later, for example. B in the processing of the loan, but this increases the time and costs – 200 to 300 dollars more. We will confirm this in writing as soon as we know how you intend to manage the payment terms. Contact us if you need a corporate lawyer or advice on a secure credit facility or an aspect of corporate credit.