As an entrepreneur, you are continuously adjusting and growing your business, by optimising processes, creating extra capacity or by scaling up. As a result, your company grows in turnover and/or profit, or at least that would be the ideal situation. It happens all too often that you want to grow and that you want to seize opportunities, but you need to take a step back or let opportunities pass by, because the financial possibilities are lacking. For example, the purchase of a new machine that can increase your production or hiring more staff so you can handle more orders. Because costs often come before the benefits, it is sometimes difficult to pay for your plans. You may also have to bridge a period and temporarily need some extra financing for this. In that case, a financing agreement can be a solution. Concluding a financing agreement must be done with due care to prevent you or your company from running into problems in the event you can not meet the obligations under the financing agreement.
Experts in financing agreements
We would like to tell you more about the possibilities of such a financing agreement and our role in realising this. This is partly as a consequence of our extensive experience with mergers, acquisitions and restructuring.
A credit agreement or a financing contract
A financing application can sometimes be complex. As an entrepreneur, you are looking for financing that suits your specific situation. Furthermore, you can choose between different providers of financing contracts, such as banks, (private) investors, crowdfunding or funds. However, all these lenders come with complex terms and conditions. The application alone can require a thorough analysis of your company and financial position. You want to present your company in the best possible way, yet at the same time present a realistic picture. So your company must be presented, but how do you do this with maximum impact?
Assistance with a Financing Agreement
Fruytier Lawyers in Business has extensive experience in assisting entrepreneurs in their search for financing constructions. Not only do we look at the financing requirement, but also when you need credit and in what form. We also think along with you about repayments and considerations. – For example, what guarantees do you have to provide to the other party? – Are these guarantees reasonable or not? – What about the financing agreement in the event of changing circumstances? All these questions and more are formulated by us in advance and dealt with in detail, so you are well-prepared when entering into negotiations with the financing party. If you contact us, we can give you a no-obligation indication of the options available to you and how we can fully support you within this process.
Example of Financing Agreement: Catering establishments with purchase agreement
A well-known field with complex financing agreements is the hotel and catering industry. Large brewers support (local) entrepreneurs in setting up a business. In exchange for this financial support, a financing contract is concluded that includes more than interest and repayments alone. A clause is added that obliges the entrepreneur to serve the brewer’s product in his business. This clause is included in the form of a purchase agreement. These contracts are also referred to as Brewery Contracts. When concluding such a financing agreement, it is important to make proper arrangements about the purchase agreement. For example, in the event the loan is repaid early or in the event of unforeseen circumstances, such as a change in price. Since the other party (in this case the brewer) is much larger, they can draw up an agreement that is quite unfavourable for you as an SME entrepreneur. The consequence: A strangulation contract. If you have signed such a strangulation contract, it is possible, under certain circumstances, to have such a contract dissolved by invoking abuse of circumstances.
Protected against a strangulation contract with Fruytier Lawyers in Business
By involving Fruytier Lawyers in Business in the application process and setup of the financing agreement, you are assured of our expertise so that you can conclude a balanced agreement. We represent your interests, allowing you to conclude a financing agreement that suits your company.