The importance of the concept of ex ante legal becomes clear when obtaining financing for a business. Knowing what legal hurdles exist before presenting business financing options to investors or other interested parties, is an integral part of the business plan. For those seeking financing options, leveraging available capital to finance growth is not just the goal – it is a necessity to survive in the current, competitive market. From an investor’s perspective, ensuring that the proposed business financing option is protected from future litigation is paramount.
Understanding the concept of ex ante legal can help to identify what legal risks exist, and then eliminate them, or at least resolve them. This increases the probability of receiving those crucial business financing funds at the proposed terms.
What is “ex ante legal” in business? In terms of its basic definition, ex ante legal refers to a process where a business owner may, to the extent possible, identify the legal pitfalls and risks that exist today that impact the future success of either the business itself or the option for obtaining financing. When creating business plans, including those to secure funding from investors or other outside sources, both defined and undefined legal risks can interfere with that opportunity.
Common examples of legal issues that are likely to come into play when seeking financing include: All of the above examples are identified as “ex ante legal matters” because they existed before financing was even considered. In other words, had these legal issues not been found and fixed early on, they could have been used against the business at the time of seeking financing, or at a later date.
How does “ex ante legal” come into play? From the perspective of the business owner, identifying where the legal risks are lies in anticipating what could go wrong if, for example, they sought an investment of capital. If there is the potential for that capital investment to be used in litigation with a third party, how can that damage be avoided? In many cases, by contacting a business litigation attorney early on, the risks can often be avoided altogether.
For the investor, the benefit of looking for risks that have not yet occurred is that they can protect their investment before committing to additional funds. This means for them to seek the assistance of a trusted legal advisor who understands how to spot where future legal problems are likely to occur. This person can then use available tools to create protections and safeguards against them.
How then does GoKapital Loans factor into all of this? Typically, GoKapital Loans as a quick and flexible source of funding for expanding businesses, where one of the concerns company owners need to worry about is, naturally, when to repay the “loan” and whether they will be able to pay it back on time. From the current article, while some of the legal complaints may be avoided, the reality is that other “surprise” issues may arise, which GoKapital is here to remedy.
That is why we offer financing alternatives that are as flexible and understanding as we are. We expect, at the very least, that you will be as invested in our partnership as we will be in your future. But that means your success must always come first. So if you need to restructure repayment terms, we’re open to that. If you need to extend your loan, we can do that too. To know more about our offers, see our post here.
In effect, GoKapital is the perfect choice whether you are at the ex ante stage, or simply need financing to meet your short-term goals.
For more information on legal matters in business, you can visit Wikipedia.