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What is a financing condition?

What it means and how to read it on a deal.

Tracking Alpha

What it is

A closing condition that lets the buyer refuse to close if it can't raise the money to pay.

On the site asNo financing conditionFinancing conditionFinancing
As it looks on the site, with made-up values
  • No financing condition
  • Financing condition
  • Financing condition not in the filings

How to read it

When the filings say there is none, the first protection dot is solid and the tag reads No financing condition. When there is one, the tag reads Financing condition, and Financing can show among the closing conditions with its status.

No financing condition doesn't say where the money comes from: funding behind the buyer does.

As it looks on the site, with made-up values
  • No financing condition
  • Financing condition
  • Financing condition not in the filings

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