By Brad MacLiver
Authorship and profile at Google
A provision of many Colorado (CO) 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. This is when the acceleration clause comes into effect. Without this clause, a lender would be able to only foreclose on one missed payment at a time. By having acceleration clause, the lender can demand immediate and full payment of all remaining balances and fees, despite whatever event kicks the clause into gear.
Pharmacy business loan or lease documents that are provided to the pharmacy owner inColorado
Tips:
1. If a pharmacy’s slowing cash flow is going to cause a business loan default, but the pharmacy owner inColorado
2. If aColorado
3. States have different rules requiring notification of an acceleration clause being exercised. Pharmacy owners 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, CO pharmacy owners should help the process by assisting the landlord re-lease the property. However, please note, should theColorado pharmacy be in the process of being sold and the files and inventory moved to a competitor’s location, the Colorado
5. Lenders prefer not to have to go through the foreclosure process, so if your 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 aColorado Colorado
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Authorship and profile at Google
A provision of many Colorado (CO) 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. This is when the acceleration clause comes into effect. Without this clause, a lender would be able to only foreclose on one missed payment at a time. By having acceleration clause, the lender can demand immediate and full payment of all remaining balances and fees, despite whatever event kicks the clause into gear.
Pharmacy business loan or lease documents that are provided to the pharmacy owner in
Tips:
1. If a pharmacy’s slowing cash flow is going to cause a business loan default, but the pharmacy owner in
2. If a
3. States have different rules requiring notification of an acceleration clause being exercised. Pharmacy owners 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, CO 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 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
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