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Loans, Borrowing and Security

Every company or businesses is likely to either borrow or lend money. This can be in the ordinary course of business, but frequently arises in connection with an important transaction (investment or acquisition). This will usually involve the grant (or obtaining) of security. Perhaps by way of a mortgage, charge or debenture or, sometimes by deposit, assignment, or pledge.

Sometimes lenders use more unconventional forms of security, such as options.

Often, security given by corporate entities (including LLPs) will become ineffective and unenforceable if not registered within a short space of time after they are granted.  We can deal with registration for you.

You may also need help with your banking documents. Has the bank produced documents that implement the commercial deal you have agreed with them? Despite laws on unfair terms in consumer contracts (implemented in the UK in 1999) it is still frequently impossible to understand banking documents without qualifying as a solicitor or, at least, a banker. We can interpret the gobbledygook for you.

If you want to offer credit to your customers, doing so is likely to be governed by the Consumer Credit Acts and might require a licence from the Financial Conduct Authority. We can help you comply with the law and regulations.

In international trade performance bonds, guarantees or to letters of credit are often required. These documents need to be meticulously drafted to make sure that you do not pay money when it is not due. Letters of credit, for example, must be strictly complied with so not including an important clause could give rise to your goods being, unacceptedly, delayed in transit.

We can help with the following kinds of documents relating to finance and security:

  • Asset finance agreements
  • Facility letters
  • Factoring or invoice discounting agreements
  • Guarantees and indemnities
  • Letters of credit
  • Loan agreements and loan notes
  • Mortgages, charges and debentures
  • Performance guarantees
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