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Securing funding for your business, funding someone else as an investor, or lending money to a business, demands a firm legal bedrock. When significant sums are at stake – and, potentially, dependent on certain requirements or stipulations, it is absolutely essential that your interests – and the interests and expectations of the other parties involved – are safeguarded by the right legal frameworks.
This is, of course, an incredibly complex process. Navigating it yourself is a big, big risk – and something that could easily deter would-be investors or lenders.
Here is what you need to know about working with corporate law solicitors through this process.
How Corporate Solicitors Can Help You Navigate the Funding Process?
1. Security
It doesn’t matter whether you’re launching a new business in need of funding, or ready to steer an existing business into a new chapter – either way, the key to ensuring a successful process is being able to balance your usual role as a business owner with the time-sensitivity and pressure of securing funding as soon as you possibly can.
This is, as you can imagine, incredibly difficult. Working with a corporate solicitor throughout this process means that you will be able to shift some of that burden onto someone else – someone who understands the ins and outs of the process, and how to move it along swiftly.
2. Speed
Speaking of moving things along swiftly, there is nothing worse than reaching a point of stagnation in the process of securing funding. Whether you are working with a bank, private equity house, or a private investor, ensuring that you can make it to the other side of this experience, being able to keep up with the process and deliver what is required of you in a timely manner is essential.
A corporate solicitor knows what to anticipate, and how to be prepared for each step in the process. This doesn’t just mean reaching the other end as soon as possible, but reaching the other end without losing sight of your other business objectives in the meantime.
3. Clarity
As soon as you have chosen your funding stream, it is vital that you are clear on your objectives and commitments, as well as any potential risks that need to be addressed as quickly & effectively as possible.
As part of their own due diligence, lenders and investors will scrutinise you as a borrower or investee, and it’s important you have everything prepared for that process.
Even if you find the time to manage this yourself – which is, of course, unlikely – there will always be a big risk of oversight or error. A corporate solicitor is the only person who can offer the assurance you need to move forward with the deal, and feel comfortable doing so.
As a business owner – even a very new one – you have no doubt already encountered situations where only the expertise and guidance of a corporate business lawyer will provide the light you need to get through to the other side. This is a perfect example of such a time, and why corporate solicitors are vital to the success of any business.
