Financing a company or a project requires legal technical precision. It is one of the areas where ‘hobbying’ leads to the biggest disasters. Which party gives money to which party? What legal relationship do they have? If it is a loan, when must it be repaid? Is there a conversion right or obligation? What securities are there? In security of which claims are the securities established? Are all the requirements for their creation fulfilled? Is a general obligation to provide collateral included? These are just some of the questions that need to be asked. In our practice we have seen cases where a negative answer to each of these questions has led to losses for the lender. And then there are the countless situations in which the fact that a formality was not followed up properly, meant that the lender was left empty-handed, unnecessarily.
Whether you are a director-major shareholder and lend private money to your B.V. Or you lend money to a friend. Or you grant a business loan to an enterprise. Or as a partner in a general partnership. Let one of our lawyers look over your shoulder – so that if the borrower gets into trouble, you will not have to get in queue.