Legal documents you'll need to review if you get funding

You'll need a lawyer to review legal documents if you successfully get funding from:

• selling shares (equity finance)
• unpaid invoices (invoice finance)
• something you own or plan to buy (asset finance)
• crowd funding or peer-to-peer lending

These documents list the terms you've agreed with an investor or lender. The documents you'll need to review or get advice on will depend on the type of funding you're getting.

If you're borrowing from a bank or lender, you might need to review:

• a term sheet
• an offer letter
• a loan agreement
• security documents

If you're getting funding from an investor, you might need to review:

• a term sheet
• a shareholders' agreement
• a disclosure letter
• articles of association
• a sale and purchase agreement

Investors might also give you a notification with details of the due diligence they're looking to do.

Advice

You should always speak to a lawyer about any legal documents you're given relating to funding. You might also want to speak to an accountant.

Further help

The following organisations may be able to offer you help finding legal advice.

Business Gateway

Business Gateway run free legal advice clinics in some regions. Find more information by contacting your local Business Gateway office.

Federation of Small Businesses

The Federation of Small Businesses offers free legal advice to its members. Find more information on the Federation of Small Businesses website.

Chambers of Commerce

Your local Chambers of Commerce might be able to refer you to a lawyer. Find out how to contact your local Chamber of Commerce on the Scottish Chambers of Commerce website.