The gap between a signed term sheet and funds in the account is where deals are won and lost. Most delays are predictable, and most are the borrower’s to prevent.
The five usual suspects
- Appraisal: comes in low, or the appraiser cannot access the property for two weeks
- Title and searches: an old mortgage never discharged, a lien from a forgotten supplier, a PPSA registration the owner did not know existed
- Corporate records: minute books out of date, directors not matching the registry, a share transfer never documented
- Environmental: a Phase I report for an industrial site that raises a question the lender must answer
- Third parties: a bank that has not signed the intercreditor agreement, a landlord who has not signed a waiver, a vendor who has not postponed
Clear them early
Order the appraisal the day the term sheet is accepted. Run your own PPSA and land titles searches and fix what you find. Have the corporate lawyer bring the minute book current. Talk to the bank, the landlord and the vendor while the lender’s lawyer is drafting, not after. A closing that takes three weeks instead of six is usually the result of a borrower who did this.
Have a situation like this? Tell us about the deal and a principal will respond within two business days. Cascade lends to businesses only, in Canadian dollars, and every rate we quote is an annual rate.
