When a business decides to raise funds, it has a number of options available. The most common options would be in the form of a loan from a licensed institution (whether in the form of overdrafts, revolving credit facilities, syndicated loans or other forms) or to approach the capital markets. These loans would c be …
Loan Agreements: The Dark Side (Part III of III) In Part I of this series we took a look at the contracting parties to a loan agreement as well as the commercial details of a loan. In Part 2, we looked at important loan terms like representations, warranties, undertakings, qualifications and exceptions. Now, we look …
Loan Agreements: The Dark Side (Part III of III) Read More »
Introduction In Part I of this series we took a look at the contracting parties to a loan agreement and the commercial details of a loan. Once the parties have agreed on the commercials of the loan, the lender generally prepares the relevant loan documents detailing the standard commercial terms and conditions on which the …
Loan Agreements: The Nitty-Gritty (Part II of III) Read More »
A sale of business or shares usually follows a predictable pattern. In many cases, the seller agrees to transfer business assets or shares before receiving final payment, which is referred to as a ‘deferred payment’ or ‘deferred loan’. A seller may agree to transfer ownership on a deferred payment basis for various reasons, including a …
Deferred Payment Sales: Risks and Mitigation Tips for Sellers Read More »
As the business world feels the effects of the coronavirus (Covid-19) pandemic and takes steps to adapt, travel companies are notifying partners that their force majeure policies have been extended to all travellers from Mainland China and all properties within Mainland China. The result is that deposits received by hotels and guesthouses will be repaid …
Lending in general South African businesses, whether state-owned, listed or just starting up, are struggling. Retrenchments are the order of the day and a poor credit rating continues to mar funding and investor prospects. However bleak it may seem, the small and medium-sized enterprise (SME) sector in South Africa is growing by the day. Several …
Loans in terms of which the obligation for repayment of the outstanding amount only arises on receipt of a demand for repayment from the lender (“Demand Loans”) are frequently being used in South Africa as part of trust/company structures or business operations in general. A word of warning – Demand Loans may have become ticking timebombs for …
Whether you are a start-up with a hunger to make it big, an existing business thinking of expansion or a person struggling with cash flow – at some point in time you will ask yourself whether or not to apply for a loan. Providing security for debt funding Regardless of the type of financial institution …
What is SAFE? The SAFE – Simple Agreement for Future Equity – has emerged in the South African investment environment as a buzz word. Introduced in December 2013 by a Silicon Valley seed funder, the instrument is gaining traction in South Africa as a means of raising seed capital and growth finance for start-ups. In traditional …
