Speedy execution of a loan agreement was like a military operation

Anyone taking out a commercial loan for the development of their business will want the transaction to complete as quickly as possible, but in a recent matter for an entrepreneur who was at the time in India the pressure to get the deal done was amplified as completion needed to happen within three days to secure a valuable tax advantage for the entrepreneur.

Ingram Winter Green was acting for the lender, who wanted a law firm which could be relied upon to deliver within such a tight timeframe.  Commercial property partner Paul Sheeter acted for the lender who knew from experience that the team at Ingram Winter Green would do everything we could to get the deal over the line. The loan was introduced by mutually known brokers. The loan was lucrative and all were keen to meet the borrower’s target.

It was a big challenge, particularly as the borrower was based in India during the transaction, but ultimately we were able to deliver what the client wanted through a combination of expertise, a great team effort and some out-of-the-box thinking. 

‘The key to bringing this transaction in on time’, says Paul ‘was that when the instructions to proceed came in, we knew from experience exactly what needed to be done and the most efficient ways in which matters could be expedited.’ 

It was like a military operation, planned carefully and executed with precision.

The loan was for the entrepreneur’s business in the UK but was to be secured against personal property on which a mortgage already existed.  Appropriate searches were put in hand immediately and enquiries made with the mortgage company to gauge the adequacy of the security offered for the loan amount of £700,000.

A detailed report to the lender on the outcome of our investigations was produced within hours of the search results being received and our enquiries being answered.  Thereafter, appropriate indemnities were negotiated with the borrower to address risk areas and ensure the lender’s interests were adequately protected.

The finance documents were transmitted to India for the borrower to review and sign and couriered back to the UK so that the originals were available in time for completion.

It was like a military operation, planned carefully and executed with precision.

One problem which arose was ensuring that the borrower was advised in India on the nature and effect of the loan agreement and identification.  Out of the box thinking achieved satisfaction for all concerned.  

Needless to say the lender was delighted with the outcome, not least because they were new to the finance market and this represented their first real estate finance arrangement.  

For further assistance

If you require help with a property finance matter that needs dealing with quickly or requires lateral thinking, please give Paul a call on 020 7845 7417 or email at paulsheeter@iwg.co.uk to see how he can help. 

Paul undertakes a variety of property finance work with an emphasis on secured lending arrangements for both lenders and borrowers, development, investment and trade funding and bespoke finance arrangements. In addition, he has substantial experience in advising borrowers on LMA standard loan agreements.

He is particularly experienced in cross-border transactions and acting on behalf of onshore and offshore Israeli nationals and businesses.

This article is for general information only and does not constitute legal or professional advice. Please note that the law may have changed since this article was published in June 2019.