If SEF has decided to make a loan, the client will receive an offer letter. The letter includes the basic terms of the loan, such as the interest rate we are offering, along with proposed securities.
Once that letter has been signed and returned to SEF, a financing agreement and security documents will be prepared by SEF’s lawyers, who will send them to the client’s lawyers to arrange with the client for signature. When all the documentation is in place, funds will be released according to our agreed disbursement schedule.
SEF does not charge application, administration or change fees, but clients are responsible for the initial legal costs SEF incurs to prepare and register the security documents. These fees will either be subtracted from the first disbursement of funds, or invoiced at a later date.
Do we need a lawyer?
It’s not a requirement by SEF, but it is probably a good idea. You will be considering substantive legal documents, perhaps more complicated than any you have encountered before, and that you may be committing your organization to live with for years to come.
If you decide not to use a lawyer, SEF can arrange for our clients’ final document signing to be handled by our lawyer, who will ensure that all necessary copies and affidavits are correctly prepared. Please contact our executive director for details.