HOW WE CAN HELP
Generally, the two main methods of acquiring financing for your business activities are debt financing and equity financing. At Jahanshahi Law Firm, our business law team has the experience and knowledge to assist your business in raising capital through debt financing and equity financing. Regardless of the method of financing you choose, we can help legally protect you throughout the transaction. Our business law team can help you negotiate a wide variety of corporate finance transactions including but not limited to:
- Asset-Based Financing – Asset-based financing refers to a type of financing that involves offering the corporation’s assets as collateral to a lender. Examples of such collateral include equipment, inventory, accounts receivable, real estate, and intellectual property. A lender wishing to register a lien on your business’s moveable assets in Ontario must enter into a general security agreement with you authorizing the lender to register a lien on the named assets under the Personal Property Security Act. Similarly, a lender must enter into a loan agreement with you including an acknowledgment and direction which authorizes the lender to register a mortgage on the title of a real estate property owned by your corporation.
- Private Equity Financing – Private equity financing usually refers to investment into a business in return for equity or ownership rights. Private equity investment could come from private equity firms or individuals. The benefit of private equity financing is that any money raised through private equity financing does not have to be repaid. On the other hand, private equity financing transactions often involve the giving up of a percentage of the ownership of the business.
- Business Loans – A method of obtaining financing for corporations simply involved obtaining a loan from a lending institution. This could be a loan from an intuitional lender such as an “A” lender or simply a loan from a private mortgage lender. In this scenario, the business does not have to give up control but must pay back the principal amount of the loan plus any interest by the due date.
If you are looking to raise capital for your business, contact us to book an initial consultation with a business lawyer to discuss your options.