Asset Based Lending: Navigating Third-Party Relationships

Failing to understand or address third-party relationships can be a costly mistake - the key is to identify and address these issues early.

Third-parties - can't deal with them, can't do a deal without them. Asset based loans are complicated. Documenting asset based loans is intrinsically tied to understanding and securing the ability of the asset based lender to enforce and realize on the collateral. Lenders and their counsel are often adept at perfecting on collateral under Article 9 of the Uniform Commercial Code. Relationships with third-parties (landlords, bailees, and other creditors) are just as important. Access to the collateral, competing liens or interests, and other rights of third-parties can be significant barriers to realizing the full value of collateral. Lenders and their counsel, however, often overlook, misunderstand or undervalue the importance of these third-party relationships. This relationship is further complicated by the fact that third-parties are often uncooperative or uninterested in reaching an agreement. They cannot be ignored though. This ondemand webinar will give lenders and attorneys the practical tools to understand and address third-party relationships. This ondemand webinar will also identify the key aspects of these relationships so that lenders and their counsel can more successfully negotiate agreements that achieve the primary goals without excessive negotiation. Failing to understand or address third-party relationships can be a costly mistake. Identifying and addressing these issues early in a lending relationship is an opportunity for attorneys to add significant value and for lenders to avoid significant losses in a liquidation or enforcement.