For your cross-border transaction to be successful, it’s important to ensure you have a process agent in place before the closing date. Once you’ve decided which country’s governing law will preside over any legal issues (should they arise), a process agent will then act as a representative upon whom court papers may be served and they’ll forward such court papers to the appointing parties.
This is why it’s important to choose a service provider that not only offers its clients a fast and reliable solution, but also provides a reasonable and flexible process agent pricing structure that demonstrates their understanding of your transaction and unique needs.
Let’s take a closer look at what a competitive and flexible pricing structure should offer.
Choosing a Competitive and Flexible Pricing Structure
From charging only on a transactional basis to understanding the multiple variants involved in each transaction, your process agent provider should be flexible in their pricing structure. They’ll be able to cater to your unique cross-border transactional needs, no matter the time zone or language.
Charging on a Transactional Basis
If you choose a process agent that charges by the number of agreements, you may spend much more than you need to. Process agents will need to understand that there are multiple operative agreements in every deal. Make sure your service provider doesn’t charge an additional fee per agreement, and that they look at transactions as a whole, regardless of the number of agreements or documents involved – this will ensure you receive even greater savings on your process agent needs.
For example, if you need a process agent for a bond offering, a pricing structure should cover the bond offering as a whole and not simply one of the documents needed for the process. By choosing a process agent that understands this, you’ll have the comfort of knowing the pricing won’t be affected based on the number of agreements you have in your transaction.
There are three main types of transactions:
- Fixed-term: Fixed-term transactions have a maturity or end-date. For instance, a bond offering might last 5-10 years, and so a process agent will often be appointed irrevocably, as required by the lender, and paid for in advance for the entire term of the loan.
- Indefinite termination date: It’s possible for transactions, such as derivative transactions, to not have a set termination date. In this case, a process agent might accept an appointment for a three- or six-year term, then renew periodically until terminated.
- Rolling year-on-year contracts: Some transactions may only require a process agent on a rolling basis, where these appointments are renewed each year. For instance, in a bridge loan where a borrower is establishing short-term financing, you might appoint a process agent for one year with an option to renew on a yearly renewal basis until longer-term financing is in place.
A Responsive 24-Hour Team
Responsiveness is critical when waiting on the acceptance of a process agent as the repercussions of not closing on time can be significant. If you choose a process agent equipped with a global multi-lingual team located in many time zones, you can receive 24-hour coverage throughout all business days, ensuring you satisfy the condition precedent of delivering the process agent’s acceptance of the appointment.
Now that you have a full understanding of what a process agent pricing structure entails, it’s time to choose a trusted and reliable process agent. Be sure to reach out to our global process agent team for immediate responses during our 24-hour service window and they’ll assist in your cross-border transactions without delay.
This article is provided for informational purposes only and should not be considered, or relied upon, as legal advice.