Typically, they are responsible for much more than just reviewing the legal documents prior to the signing of a deal. They are deeply involved in helping to structure the entire transaction to make sure that the client’s rights and interests are protected and the documents accurately convey the terms of the deal.
In a single transaction, commercial finance lawyer will only work for one side. But, many commercial finance lawyers represent both commercial lenders and commercial borrowers in separate, non-related transactions.
The types of commercial lenders involved in any transaction include banks, construction lenders, private lenders, and entrepreneurs.
Commercial lenders hire banking attorneys to:
- Draft and negotiate loan documents
- Ensure regulatory compliance
- Handle senior secured credit financing
- Negotiate workout agreements
- Manage collection actions
- Represent the lender’s interests in bankruptcy proceedings
Because lenders must operate under an extensive layer of regulation and oversight, commercial finance attorneys are needed to help make sure that not only are deals in the best interest of the lender, but that the deals do not violate and legal restrictions on the lender’s activities.
Large, complex commercial loans and transactions often require many different documents and involve multiple parties before they can be successfully closed.
Commercial borrowers include companies, entrepreneurs, real estate developers, and private parties. A banking lawyer works to help the borrower get the best deal and make sure their legal rights are protected in the legal documents formalizing the deal.
Commercial borrower retain banking lawyers to:
- Draft and negotiate documents
- Structure buyouts and merger agreements
- Secure financing for startups
- Guide a company through the stock exchange listing process
- Negotiate deals for working capital and equipment financing
It is not uncommon for a commercial borrower to need deals with multiple lenders and investors to secure the capital needed for a particular project or transaction. A commercial finance attorney works to make sure all of the smaller deals work together to fit the needs of the client.