Closing date

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Closing Date. The date the legal documents are finalized, conditions precedent have been satisfied. The loan can be funded at this time.

When a company and lender sign a term sheet they should both be focused on closing the transaction. After a term sheet is signed the lender typically has additional due diligence to complete. Full legal documentation is drafted and negotiated. At CLP we take a month to five weeks to complete this. Some lenders and banks may take up to eight weeks and I have seen deals funded in as little as three weeks.

If timing gets tight some of the tasks can be pushed into post-closing which means they are noted in the documentation but settled after the loan has closed and funded. Pushing out the date for these items can help facilitate a closing but may also increase legal fees as lawyers spend time tidying up loose ends.

Company tip:

If timing is important ask which parts of the closing typically take the longest and get those started early.