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- Product Labeling Law: ANSI, UL, CPSC - Some Thoughts for Product Importers and Distributors
- Buying a Car Wash In NY or NJ: Some Thoughts for Purchasers
- Buying a Gas Station or Car Wash you Need Landlord Consent - No Matter What the Lease Says
- $22 Million New York City Entrepreneur Fund Created for Starting Businesses in New York City
- Small Business Commercial Lease Agreements in New York: Limiting your Personal Guaranty may Not be Enough
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- "Must Use" Online Resources When Buying a Business or Franchise...
Posted on 1/13/2011
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Business Transactions
- CPSC Reporting Requirements: Knowing When to Report a Product Defect
- Three Things You Need to Remember About Your Product Warranties
- FTC's "Environmental" Marketing Rules: What Manufacturers, Distributors and Franchisors Need to Know
- Proposition 65: Information that Product Manufacturers and Distributors Need to Know
- Prop 65 Warning Requirements for Product Manufacturers and Distributors
The Importance of a "Financing Contingency" when Buying a Business
If you are buying a business in New York or New Jersey and expect to rely on financing from the Small Business Administration or a bank, before you sign any contract it is important that you speak with your business lawyer about adding a "financing contingency clause" to your asset purchase agreement. The "financing contingency clause", if drafted correctly, will permit you to cancel the business agreement (and get your contract deposit back) if your business loan application is denied.
The "financing contingency clause" must be specific and include, among other things, the time period you will be given to obtain a loan commitment, the maximum amount of the loan and the source of the loan, i.e., will the loan be from a financial lender or a government insured program such as those offered by the Small Business Administration. Likewise, if the transaction is conditioned upon financing from the seller, this must be specified in the purchase agreement;
IMPORTANT DISCLAIMER: The information contained on this website is provided for general educational purposes only, should not be relied on as legal advice and does not serve to create an attorney client relationship. In utilizing this website you acknowledge that there is no attorney client relationship between you and Charles N. Internicola, Esq. and that the information contained on this site does not and cannot serve as a replacement for the competent legal advice of a licensed attorney in your state. The content of this website is subject to the Copyright of its author, Charles N. Internicola, Esq.
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