By Brad MacLiver
Authorship and profile at Google
A provision of many AZ pharmacy business loans and commercial leases is an acceleration clause. This clause in the loan/lease agreements will allow the lender to accelerate their collection of payments contingent on an event occurring. Events may include lack of payment by the borrower, a failure to keep the property adequately insured, failure to pay tax assessments, failure to maintain the property, the selling of the property/asset, etc.
Lenders look at the acceleration clause as an important tool in business loan and commercial lease programs. Loan and lease documents may not address the foreclosure of a property specifically, or the 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.
TheArizona
Tips:
1. If a pharmacy in Arizona's’s slowing cash flow is going to cause a business loan default, but the pharmacy owner has additional unencumbered assets they may be able to negotiate with the lender by offering additional collateral.
2. If a pharmacy can catch up on their payments they can reinstate the business loan before the acceleration starts.
3. States have different rules requiring notification of an acceleration clause being exercised. Pharmacy owners in AZ should understand the laws in the state where they operate. Lack of knowledge is not an excuse.
4. When an acceleration clause is exercised on a commercial lease, there is the possibility the landlord cannot collect rent from both the defaulting tenant and a new tenant at the same time. To save themselves some money, pharmacy owners should help the process by assisting the landlord re-lease the property. However, please note, should theArizona
5. Lenders prefer not to have to go through the foreclosure process, so if yourArizona
6. Some pharmacy business loans in AZ 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 aArizona Arizona
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Authorship and profile at Google
A provision of many AZ pharmacy business loans and commercial leases is an acceleration clause. This clause in the loan/lease agreements will allow the lender to accelerate their collection of payments contingent on an event occurring. Events may include lack of payment by the borrower, a failure to keep the property adequately insured, failure to pay tax assessments, failure to maintain the property, the selling of the property/asset, etc.
Lenders look at the acceleration clause as an important tool in business loan and commercial lease programs. Loan and lease documents may not address the foreclosure of a property specifically, or the 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
Tips:
1. If a pharmacy in Arizona's’s slowing cash flow is going to cause a business loan default, but the pharmacy owner has additional unencumbered assets they may be able to negotiate with the lender by offering additional collateral.
2. If a pharmacy can catch up on their payments they can reinstate the business loan before the acceleration starts.
3. States have different rules requiring notification of an acceleration clause being exercised. Pharmacy owners in AZ should understand the laws in the state where they operate. Lack of knowledge is not an excuse.
4. When an acceleration clause is exercised on a commercial lease, there is the possibility the landlord cannot collect rent from both the defaulting tenant and a new tenant at the same time. To save themselves some money, pharmacy owners should help the process by assisting the landlord re-lease the property. However, please note, should the
5. Lenders prefer not to have to go through the foreclosure process, so if your
6. Some pharmacy business loans in AZ 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
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