News & Insights

Introduction In recent years, venture debt has emerged as a significant financing option for startups, alongside conventional forms of debt financing such as bank loans and credit lines. Although both types of debt provide capital, they cater to diff… Read More

Our annual client event was unforgettable this year! We enjoyed the company of many clients and friends at a fantastic rooftop gathering. Special thanks to New York State Senator Zellnor Myrie for joining us. We sincerely appreciate all attendees for… Read More

Legal Scale proudly served as a sponsor of the 2024 Venture Debt Conference hosted by DealFlow Events. The conference’s focus is on nondilutive loan strategies – a core area of expertise for Legal Scale. This event provided an ideal venue for Leg… Read More

Intercreditor agreements are legal contracts that outline the rights and relationships between different classes of lenders who have a claim on the same borrower’s assets. These agreements are crucial in complex financing structures, such as th… Read More

A borrowing base sets the maximum amount that a borrower can access through an asset-based loan. Borrowers and lenders negotiate the calculation of the borrowing base by determining the value of different types of collateral (such as cash, accounts r… Read More

Financial covenants are used as a tool for lenders to measure a borrower’s health and to test their ability to incur additional debt. Borrowers and lenders alike negotiate financial covenants to ensure it works both for the company’s ability to r… Read More

In the world of commercial lending, securing debt financing is a crucial aspect of business operations. Uniform Commercial Code (“UCC”) financing statements play a vital role in this process, serving as a legal document filed by a lender to secur… Read More

We are seeing many credit agreements being amended within today’s market. Most of these amendments are centered around the rising interest rates in the economy and macroeconomic changes. While many amendments in the recent market have been focused… Read More