Asset-based loans are the most common form of finance among closely held companies. Often lenders are unwilling to loan on the basis of a company’s cash flow – or loan on terms the company finds acceptable – leaving collateral based loans – secured by the company’s equipment, inventory, receivables or other assets – as the only form of capital available to the company. Each type of collateral loan has a different structure and its own nuances that may help the company sustain operations and grow, or prove to be an operational hindrance. This program will provide you with a practical guide to structuring, reviewing and drafting for asset-based loans.
· Focus on specific types of loans and structuring and drafting nuances of each
· Equipment financing – attachment, perfection and priority issues
· Inventory financing – eligibility, lending formula, and attachment
· Receivables financing – identifiable cash proceeds, lockbox arrangements and control agreements
· Anticipating enforcement – repossession, disposition, and retention
· Review bankruptcy issues
Steven O. Weise, Proskauer Rose, LLP – Los Angeles