WHY WOULD SOME LENDERS REFUSE TO SIGN AN NDA?
Dear SF Community, I have a company under an LOI and I have been reaching out to lenders to get term sheets. While most lenders are okay with signing an NDA, some lenders insist it is not necessary as they treat all deal-related information as confidential material anyway.
Is it "safe" for me to work with lenders without an NDA?
Why would some lenders refuse to sign an NDA?
Thank you for your time.
If a bank is signing this, they are ignoring it, it will be filed and they don’t give a hoot about it. A bank that refuses is being thoughtful, candid, and honest and saying, “we aren’t signing it, because it is meaningless.” The bank will be reasonable and protect the information because their reputation matters.
In all reality though, if the only way you can get comfortable sharing confidential information with a certain party is by having them sign an NDA, you shouldn't be sharing information with them in the first place.
NDA's are worth the paper they're printed on.