5 things you need to know about Leasing/Loans
- If you lease commercial premises, you will need to enter a commercial lease, or takeover an existing lease from the current tenant. Commercial property and equipment leases agreements are binding legal documents. They generally last for several years, and contain considerable obligations, so it’s important to understand what the lease covers.
- Commercial property leasing is a specific area of the law, which is different in each state of Australia. It’s important that you work with a property lawyer who has experience in your state if you need a commercial lease drafted or reviewed.
- The main issues to address in commercial property leasing are: (i) the term, and whether an option period will be granted; (ii) the rent payable, and whether it will increase with CPI, (iii) whether security will be required; (iv) permissible use and (v) how the commercial lease agreement can be terminated.
- If you’re considering leasing a piece of equipment, the three main issues to consider are (i) who will be responsible for repairing the equipment if it is damaged, (ii) who will be responsible for insurance, and (iii) whether the lessee can purchase the equipment at the end of the lease. This is known as a hire/purchase agreement.
- Many businesses enter into loans when they lease premises or hire commercial equipment. Banking and finance is a complex area of law. Generally if you obtain a loan or lend to a business, the loan agreement will need to be secured, which means you will need to enter into a security agreement with the borrower. It is important to work with a specialist banking and finance lawyer.
Commercial Law, Contract Law, Information Technology And Online Law, Intellectual Property, Capital Raising LawExperience:
Bank of America Merrill Lynch, Baker & McKenzie, Hogben Group
Asset Leasing, Business Structuring/Start Ups, Employee Share Options Plans, Loans (Secured, Unsecured And Convertible), Online LawExperience:
Clayton Utz (Sydney), Herbert Smith Freehills (Sydney), Norton Rose Fulbright (London, Paris, Amsterdam and Hong Kong)