What this is: An outline of the five best qualities to look out for when hiring a process agent, helping you make the best decision for your transaction.
What this means: A process agent appointment is typically a requirement set by a lender on behalf of the third party, so it’s important you find the perfect candidate for your specific deal requriements and this article will give you pointers on how to go about doing that.
What should you be looking for when appointing a process agent for a cross-border financing transaction?
Appointing a process agent (or agent for service of process) for a financial transaction is just one of the many important items that must be completed as a condition precedent before releasing any funds or reaching the closing or filing date.
How do you choose the right process agent service company? The following are the top five qualities to take into consideration to ensure your transaction proceeds as planned.
Time is always of the essence when closing on a large cross-border financial transaction or real estate CMBS or REIT deal. Missing a target filing date in a transaction because you were waiting on the acceptance of the process agent could be a disaster. Sometimes, the cost of not closing or funding on time can be significant.
Whether you’re contacting a potential process agent with the intent to close in a week, 24 hours or even that very afternoon, you need a professional process agent company that understands how critical a swift response is for meeting your closing date.
How fast do they respond to your initial quote request? How quickly will they deliver a draft agreement or process agent appointment letter? These are questions that help ensure you receive acceptance documentation on time to satisfy the conditions of your operative agreements and the tasks on your closing checklist.
A process agent appointment is typically a requirement set by a lender on behalf of the third party. This may be a borrower, guarantor, lessor, or filer (for SEC filings) depending on the negotiated terms of the financial transaction.
Just because a process agent is required, doesn’t mean that the cost isn’t a consideration. Obtain a quote for process agent services and be sure to understand the pricing models you receive. Be aware of process agents that have additional fees to expedite delivery of their acceptance or additional revision fees, as these costs can really add up.
It’s important to find a process agent that understands no matter how large a cross-border transaction may be, the costs as a whole are always an important consideration to the companies involved.
Related Read: Demystifying Process Agent Pricing
Need a process agent? Watch our video "Appointing a Process Agent in 3 Steps" to learn how you can appoint one fast.
3. Attentive and Flexible
The process agent you choose should provide a personalised and customised service.
As mentioned above, time is of the essence. When you engage a process agent, expect a prompt, clear quote for services and a model form of appointment agreement or letter. Your chosen agent should also allow for customisation of the appointment agreement and invoicing instructions, as per the needs of your transaction.
Appointing a process agent is just one small component of closing a transaction. The ideal process agent will make the appointment as simple, seamless and transparent as possible so you stay on track for your target closing date.
A professional process agent should understand how their role plays into your transaction, before and after closing.
5. Relationship-Oriented, Before and After Closing
Appointing a process agent can often be a speedy affair but it establishes a relationship that will endure through the terms set by the transaction — and possibly more transactions to come.
It’s important to appoint a professional process agent that embodies all of the qualities above throughout your financial transaction, especially if your company is engaged in multiple cross-border financing transactions requiring a process agent.
A relationship-oriented process agent company may, for example, create customised master agreements that can be tailored to each deal, reducing your paperwork and increasing efficiency across transactions.
A professional process agent service company that meets the five criteria outlined above will no doubt provide you with a cost-effective, time-saving solution to meet this important requirement for your financial transactions.
Seek out a trusted partner who works for you, who will be available throughout the term of each transaction and will proactively help you to avoid problems, delays and unnecessary costs.
Curious to know more about the importance of appointing a process agent for your cross-border transaction? Download our white paper, ‘What is a Process Agent and Why Do You Need One’ to find out what you need to know.
This content is provided for informational purposes only and should not be considered, or relied upon, as legal advice.