Most companies will go through the process of borrowing funds
from a financial institution at some point in their operations. For
those who have never been through the process before, it can be an
interesting experience. Although the process may differ somewhat
from institution to institution, a number of matters will remain
consistent.
Generally, the starting point is to meet with your financial
institution to determine the terms of the loan or credit facility
being sought by the borrower and what the financial institution is
willing to provide. Once this has been done, the institution will
provide the borrower with a commitment letter detailing the terms
of the loan and the security required by the institution. As a
borrower, it is important to carefully review the commitment letter
so you are aware of what is being provided and what is required in
order to proceed.
