Negotiating Asset Based Financing Transactions

About the Course:

This session provides a comprehensive overview of negotiating asset based loans. The session begins with insights into the players that extend asset based loans (e.g. large banks, specialty finance companies, and factors) and then moves onto discussing the various types of asset based loans (such as loans, leases, factoring, and purchase money transactions).

The following are among the asset based lending issues that are discussed:

  • Types of collateral
  • Intercreditor agreements
  • Security for debt
  • Dominion vs. non-dominion
  • Covenants
  • Default triggers
  • Demand obligations

Among the negotiating issues discussed in this thorough webinar are the following:

  • What time of year is best to seek asset based financing?
  • How can borrowers negotiate more favorable lending rates?
  • What are the merits of borrowers having opinion letters prepared?
  • How can the arguably conflicting provisions--commitment fees and lenders' "sole discretion" to freeze credit facilities--be negotiated?
  • What provisions can be negotiated into the lending documents to reduce the risk of the loan compliance obligations distracting management from running the business?
  • What financial provisions can be used to insulate lenders from representation and warranties risks?
  • Do borrowers typically gain significant leverage by pre-packaging due diligence?
  • Why might lenders insist on validity guarantees from senior executives employed by the borrowers?
  • Should specific cure provisions be included in the loan agreements?
  • What are the risks of lenders' lawyers over-negotiating detailed performance and reporting conditions?
  • What concerns should borrowers have regarding lenders that have a "lend-to-own" strategy?

Course Leader: Christopher G. Dorman, Partner, Phillips Lytle LLP

Mr. Dorman concentrates his practice in the area of banking and commercial law, including secured lending, asset-based financing, trade finance, factoring, acquisition financing, intellectual property finance, loan restructuring and workouts, equipment leasing and chattel paper finance.

Course Length: Approx. 1.5 hours

$295.00 PER USER

Purchase Now:

Need help purchasing this course? Please contact Neomi Barazani at 609-919-1895 ext. 100 or at