By Brad MacLiver
Authorship and profile at Google
A provision of many NV pharmacy business loans and commercial leases is an acceleration clause. The acceleration clause in the loan/lease agreements allows the lender to accelerate their collection of payments contingent on an event occurring. These events may include lack of payment by the borrower, failure to keep the property adequately insured, failing to pay tax assessments, not maintaining the property, selling the property/asset, etc.
Lenders view the acceleration clause as an important tool in their business loan and commercial lease programs. Loan and lease documents might not specifically address the foreclosure of a property, or repossession of an asset, but this is where the acceleration clause comes into effect. Without the clause the lender would only be able to foreclose on one missed payment at a time. With the acceleration clause, despite whatever event kicks the clause into gear, the lender can demand immediate and full payment of all remaining balances and fees.
The pharmacy business loan or lease documents provided to theNevada
Tips:
1. If a pharmacy’s slowing cash flow is going to cause a business loan default, but theNevada
2. If a pharmacy inNevada
3. States have different rules requiring notification of an acceleration clause being exercised. Pharmacy owners should fully understand the laws in their own state because lack of knowledge is not an excuse.
4. When an acceleration clause is used on a commercial lease, the possibility exists that the landlord is unable to collect rent from both the defaulting tenant and a new tenant at the same time. So, to save themselves money, pharmacy owners should aid the process by assisting the landlord re-lease the property. Please take not, however, that should the pharmacy be in the process of selling and the files and inventory moved to a competitor’s location, the pharmacy buyer will then require restrictions in the Purchase and Sale Agreement that forbid the new tenant from being another pharmacy.
5. Lenders prefer not to have to go through the foreclosure process, so if your NV pharmacy is headed in that direction start talking with the lender about finding a solution. Communication with the lender is a good thing.
6. Some pharmacy business loans and commercial leases require a “personal” guarantee from the business owner. This means that the business owner’s personal assets and credit will become involved in the event of a default. The “corporate” status of the business will not keep the lender from seizing the personal assets.
When considering financing a pharmacy for acquisition, or expansion, due diligence and understanding of all aspects of the transaction should be considered. Using the services of aNevada
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Authorship and profile at Google
A provision of many NV pharmacy business loans and commercial leases is an acceleration clause. The acceleration clause in the loan/lease agreements allows the lender to accelerate their collection of payments contingent on an event occurring. These events may include lack of payment by the borrower, failure to keep the property adequately insured, failing to pay tax assessments, not maintaining the property, selling the property/asset, etc.
Lenders view the acceleration clause as an important tool in their business loan and commercial lease programs. Loan and lease documents might not specifically address the foreclosure of a property, or repossession of an asset, but this is where the acceleration clause comes into effect. Without the clause the lender would only be able to foreclose on one missed payment at a time. With the acceleration clause, despite whatever event kicks the clause into gear, the lender can demand immediate and full payment of all remaining balances and fees.
The pharmacy business loan or lease documents provided to the
Tips:
1. If a pharmacy’s slowing cash flow is going to cause a business loan default, but the
2. If a pharmacy in
3. States have different rules requiring notification of an acceleration clause being exercised. Pharmacy owners should fully understand the laws in their own state because lack of knowledge is not an excuse.
4. When an acceleration clause is used on a commercial lease, the possibility exists that the landlord is unable to collect rent from both the defaulting tenant and a new tenant at the same time. So, to save themselves money, pharmacy owners should aid the process by assisting the landlord re-lease the property. Please take not, however, that should the pharmacy be in the process of selling and the files and inventory moved to a competitor’s location, the pharmacy buyer will then require restrictions in the Purchase and Sale Agreement that forbid the new tenant from being another pharmacy.
5. Lenders prefer not to have to go through the foreclosure process, so if your NV pharmacy is headed in that direction start talking with the lender about finding a solution. Communication with the lender is a good thing.
6. Some pharmacy business loans and commercial leases require a “personal” guarantee from the business owner. This means that the business owner’s personal assets and credit will become involved in the event of a default. The “corporate” status of the business will not keep the lender from seizing the personal assets.
When considering financing a pharmacy for acquisition, or expansion, due diligence and understanding of all aspects of the transaction should be considered. Using the services of a
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