How to prepare a company's documentation for a financing application?

Before applying for financing, it is recommended to verify that the company's corporate and financial documentation is complete and up-to-date. This preparation facilitates the checks carried out by the financial institution and the professionals involved in the application.

Depending on the nature and amount of funding, it may be necessary to:

• check and update the minutes book;
• ensure that the annual resolutions and other required corporate documents have been prepared;
• verify that the registers of directors, officers and shareholders, as well as the registers of securities and transfers, reflect the current situation of the company;
• to gather the statutes and their amendments as well as the regulations;
• prepare the financial statements and other financial information requested;
• gather the contracts or other relevant documents for the financing;
• verify loans, collateral or other guarantees already granted by the company, where relevant;
• verify the identity and powers of the persons authorized to act and sign on behalf of the company;
• prepare the resolutions authorizing the loan, the signing of the financing documents and, where applicable, the guarantees granted by the company.

The financial institution does not necessarily request the entire minutes book. Depending on the case, it may instead require specific corporate documents as well as the resolutions necessary for the transaction.

In certain financing arrangements, particularly when substantial guarantees are provided, the notary or lawyer handling the case may also need to review the minutes book and provide a legal opinion confirming certain information about the company, its powers, and the authorizations required for the transaction.

If the corporate documentation is incomplete, certain adjustments may need to be made before the financing documents are signed.

In summary , preparing a company's documentation for financing involves verifying its corporate records, financial situation, existing commitments, signing authority, and the necessary authorizations for the transaction. Depending on the financing, the financial institution may request specific corporate documents or require a legal opinion prepared by the professional handling the file.