Equipment Finance Law Attorneys

Understanding Equipment Finance Law

Equipment finance is a specialized area of lending involving the financing of tangible assets – primarily equipment – used in a business’s operations. It’s a crucial but often intricate process that requires careful legal consideration. The core of equipment finance involves a lender providing funds to a borrower, who uses those funds to purchase equipment, which is then held by the lender as security for the loan.

Our expertise in Equipment Finance Law covers a broad spectrum of transactions and issues, including:

• Financing Agreements: We draft, review, and negotiate financing agreements that govern the terms of the loan, including interest rates, repayment schedules, security arrangements, and default provisions.
• Security Agreements: Establishing a robust security agreement is paramount. We ensure that the lender's security interest in the equipment is properly perfected and prioritized, safeguarding their rights in case of default.
• Lease Agreements: We advise on various types of equipment leases – capital leases, operating leases – and structure agreements to meet the specific needs of both the lessor and the lessee.
• Due Diligence: We assist clients with conducting thorough due diligence on equipment, borrowers, and potential financing arrangements to mitigate risk.
• Default and Workout: When a borrower experiences financial difficulties, we provide strategic advice on workout solutions, including restructuring loans, negotiating settlements, and foreclosing on the security interest.

Key Considerations for Lenders & Lessors

1. Risk Assessment: A critical initial step is understanding the borrower’s financial condition and the value of the equipment being financed.
2. Collateral Perfection: Ensuring the lender’s security interest is properly perfected under applicable state laws is essential to protect their claim against the equipment.
3. Documentation: Comprehensive and accurate legal documentation is vital to avoid disputes and facilitate efficient enforcement of rights.
4. Compliance: Staying abreast of relevant regulations and compliance requirements is crucial for lenders and lessors.

Why Choose Us? Our experienced attorneys understand the nuances of equipment finance and provide tailored legal solutions to meet your specific needs. We strive to build strong, long-term relationships with our clients and deliver clear, practical advice. We are dedicated to protecting your interests throughout the entire equipment finance process.