A guarantee occurs when a third party – usually a manager or another company within the same group – agrees to pay a debt if the originally obligated party is unable to do so.

However, in an international context, a guarantee poses additional challenges because each country has its own legal requirements regarding content and form. Therefore, it is essential to check in advance whether the guarantee is legally recognized and enforceable in the respective country.

Our lawyers specializing in international, commercial and trade law can help you draft contracts with the appropriate clauses, especially with regard to choice of law and agreement on jurisdiction. We support you in negotiating and legally structuring all financing instruments and securities in France, Germany, and third countries in close cooperation with our foreign colleagues from our a-Global partner network.

Leasing is an attractive financing option for capital goods because it allows you to avoid paying the entire purchase price up front. In international business, leasing allows you to spread payments out over a longer period. In certain countries, you can even take advantage of tax benefits.

However, it is crucial that leasing agreements abroad are precisely worded, especially regarding the purchase option at the end of the term, payment terms, and protection in the event of damage. Different tax and accounting regulations apply to leasing agreements in each country, which can significantly impact the financing structure.

Our lawyers specializing in international, commercial and trade law can support you in negotiating and drafting legally compliant leasing agreements in France, Germany, and other countries. In close cooperation with our foreign colleagues from our a-Global partner network, we ensure that the agreements comply with local regulations and advise you on the necessary collateral to avoid unexpected disadvantages, such as tax burdens.

Factoring, the sale of receivables to a specialized company, can be a sensible solution for quickly converting international outstanding receivables into liquidity. Selling unpaid invoices improves your cash flow because you don’t have to wait for customer payments. This reduces payment defaults and stabilizes your company’s cash flow.

However, it is crucial to carefully review the calculation of fees, contractual terms, and the legal framework in the country where the factor operates.

Our lawyers specializing in international, commercial and trade law will advise you on selecting a suitable factoring partner and support you in drafting legally compliant contracts to protect your receivables in France, Germany, or a third country. We work closely with our foreign colleagues from our a-Global partner network to provide this service. We ensure that assignments of claims are effective in countries affected by factoring and that all legal requirements are met.

International financing agreements can entail considerable risks if their terms are not carefully negotiated. These risks include variable interest rates, termination clauses with high early repayment penalties if the bank terminates the agreement prematurely, and the choice of competent court in the event of a dispute. Since legal systems vary from country to country, certain clauses may be inapplicable or disadvantageous in a given country.

Jurisdiction and choice of law clauses are particularly critical because their invalidity can lead to significant legal and financial disadvantages. Therefore, it is essential to examine the legal implications of key contractual clauses in advance.

Our lawyers specializing in international, commercial and trade law can help you draft financing agreements that are legally compliant. We ensure that all essential clauses, particularly those relating to term, payment modalities, contractual penalties, and bank guarantees, align with your company’s interests and comply with the legal requirements of the country where the agreement will be executed.

As part of their standardized contracts, banks often use overly broad or opaque clauses. Certain clauses, such as those relating to jurisdiction, are sometimes legally ineffective and can be deemed invalid by courts during litigation. Without legal counsel, however, companies often fail to recognize critical clauses and unknowingly accept terms that are disadvantageous or unenforceable in the event of a dispute.

Our lawyers specializing in international, commercial and trade law carefully review international banking agreements, helping you identify non-transparent or surprising clauses. They can successfully challenge the legal validity of these clauses during contract negotiations or court proceedings and negotiate legally secure contract terms that are in your company’s best interests.