Every financing transaction is based on one essential element: trust.
However, in the financial world, trust is often supplemented by legal mechanisms designed to protect the parties against potential defaults.
These mechanisms are known as collateral or guarantees.
Many contracts appear to be fully finalized at the time of signing. However, in numerous real estate, corporate, or financial transactions, the contract’s effects depend on whether a specific future event occurs or fails to occur.
When a company or investor seeks financing, they often focus on variables such as the interest rate, the term, or the amount available. However, there is one factor that can be just as important to the success of the transaction: the credit structure.