Should I insist on customized documents for my commercial loan or just use the lender’s standard forms?

Customized documents are always preferable but they come at a cost, as the lender will typically require the borrower to pay the fees of the lender’s attorney to prepare those documents. This will not be an insignificant expense, but it may well be worth it. Standard documents generally contain every covenant and prohibition that the lender might want in any deal, not just those that are necessary in your particular financing. Prohibitions against additional indebtedness and liens, distributions to owners, and changes in ownership that are included in standard loan documents may interfere with future business expansion or succession planning initiatives.