Legal Definitions - money scrivener

A money scrivener is an individual or entity that acts as an intermediary, connecting people or organizations who need to borrow money with those who are willing to lend it. Their primary role involves facilitating loan transactions, often by identifying suitable lenders, negotiating terms, and preparing the necessary documentation to formalize the agreement between the borrower and the lender. Essentially, they serve as a broker for financial loans.

• Example 1: Funding a Startup Expansion

  Imagine a promising tech startup that needs significant capital to expand its operations and hire more engineers. While they have a solid business plan, they don't yet have the extensive collateral or long operating history that traditional banks often require for large loans. A money scrivener specializing in venture finance steps in. This scrivener connects the startup with a network of angel investors and venture debt funds that are specifically looking to invest in high-growth companies. The scrivener helps the startup prepare its financial projections, presents the opportunity to potential lenders, and then drafts the complex loan agreements, ensuring all legal and financial terms are clearly defined and agreed upon by both the startup and the investors.

  This example illustrates a money scrivener acting as a broker by finding non-traditional lenders (angel investors/venture debt funds) for a borrower (the startup) and managing the intricate process of securing and documenting the loan.

• Example 2: Securing Capital for a Commercial Real Estate Project

  A property developer plans to build a large mixed-use complex, requiring tens of millions of dollars in financing. This scale of funding often exceeds what a single bank can or will provide. The developer engages a money scrivener with expertise in commercial real estate finance. This scrivener identifies a consortium of institutional lenders, including pension funds and private equity groups, that are interested in funding such a large project. The scrivener then orchestrates the entire financing process, negotiating interest rates and repayment schedules across multiple lenders, coordinating due diligence, and meticulously preparing all the legal documents required for a multi-party construction loan.

  Here, the money scrivener facilitates a large, complex loan by bringing together multiple lenders for a single borrower (the developer) and handling the extensive legal and financial coordination required for the transaction.

• Example 3: Arranging a Private Loan for a Unique Asset Purchase

  An individual wishes to purchase a rare, high-value antique collection but prefers to secure a private loan rather than go through a conventional bank, perhaps due to specific privacy concerns or unique collateral arrangements. They approach a money scrivener known for connecting individuals with private wealth sources. The scrivener identifies a high-net-worth individual who is willing to provide a bespoke loan, potentially secured against other personal assets or with a tailored repayment schedule. The scrivener then drafts a detailed loan agreement that outlines all the specific terms, including interest rates, collateral, and repayment milestones, ensuring both parties' interests are protected and the transaction is legally sound.

  This example demonstrates a money scrivener facilitating a private, customized loan between an individual borrower and a private lender, managing the creation of a tailored legal agreement outside of standard banking practices.