Legal Advice to Finance Your Business

Christopher R. Neufeld

Neufeld Legal P.C.

Calgary, Alberta / Toronto, Ontario  

Main    Investor Financing    Bank Financing    International Finance     Transactions    Email    403-400-4092    416-887-9702


Lawyer Profile

Investor Financing

Debt Financing

Equity Financing

Share Considerations

Pre-IPO Approach

Angel Investors

Venture Capital

Bank Financing

Due Diligence Review


Corporate Refinance

International Financing

Transaction Financing

Business Acquisitions

Vendor Take-Back

Corporate Buy-outs

Equipment Purchase

Company Financing



Canadian commercial banks, governed by the Bank Act (Canada), provide a range of financing options for business, largely dependent on the amount of risk that they perceive that they will be required to assume. For the greater risk, the more assurances and security that will be sought, to the point where they will deny the requested financing, thereby necessitating alternate sources of financing being sought outside of the realm of regulated financial institutions.

Although some bank financing is provided on an unsecured basis, this has become increasingly less common, with security being sought in the greater preponderance of bank financing. As such, property and assets of the business are typical sought, including accounts receivable, intellectual property rights, fixed assets and real estate.

The form of bank financing can range from short-form commitment letters (supported by a general security agreement), a banker's acceptance (a short-term note derived from the money-market and guaranteed by the borrowing Canadian chartered bank), letters of credit and letters of guarantee, and more complex loan agreements (which in turn are more costly). Banks are constantly aiming to insure that at the end of the day they will collect on their advance, whether this is in accordance with the negotiated payment schedule or upon that which has been secured against. Unfortunately, such security may unnecessarily hamper the business' operations, such that making those scheduled payments adverse impacts its operations and advancement.

As such, legal counsel serves an important role with any bank financing. Given that the banks have issued countless financial advancements and sought to protect themselves with well-developed contractual language, that has given rise to near iron-clan lending arrangements, that over-whelmingly favor the banks, it is important that you business understands its legal arrangements and the serious consequences that arise with not fulfilling your specific contractual obligations (and thereby default on the loan).

To learn how we can assist your business with its banking financing, contact Neufeld Legal P.C. at 403-400-4092 / 416-887-9702 or via email at  

Financing Lawyer Christopher R. Neufeld is a corporate commercial solicitor with the law firm of Neufeld Legal P.C. and is admitted to practice law in Alberta and Ontario (Canada) and New York (U.S.A.).  Our legal practice focuses primarily on business law, in particular corporate commercial transactions and their dependence on commercial financing.  The law firm's offices are situated at 144 - 4th Avenue SW, Suite 1600, Calgary, Alberta T2P 3N4; 1 Yonge Street, Suite 1801, Toronto, Ontario M5E 1W7; and 719 Catalina Crescent, Burlington, Ontario L7L 5B9. COPYRIGHT 2012.

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