Loan Agreements

Clarity and protection when lending or borrowing

Whether you’re borrowing money to fund growth in your business or lending to a third party to assist them with a big purchase, a well-drafted loan agreement protects everyone involved and helps avoid costly disputes.

At Hopkins Solicitors, we prepare clear and comprehensive loan agreements that reflect the terms of your deal and safeguard your position throughout the life of the loan.

What’s Involved

Our loan agreement service typically includes:

• Initial review – to help us understand the purpose, amount and repayment terms of the loan.
• Drafting or reviewing the loan agreement – including interest, default and repayment terms.
• Advice on security arrangements – such as personal guarantees or charges, if required.
• Consideration of Regulatory Compliance – some types of lending are regulated and it can be a criminal offence to lend if this is not done correctly or if you are not licenced to do this.

We’re equally experienced acting for borrowers or lenders and can ensure all parties are clear on their obligations.

At an early stage, it is important to involve your other professional advisers – accountants and independent financial advisors – and we can then work closely with these to ensure the transaction progresses smoothly and any commercial or tax considerations are properly factored in.

Things to Consider

When entering into a loan arrangement, it’s useful to think about:

• Terms: How much is being lent, on what terms and over what period?
• Interest: Is the rate fixed, variable or rolled-up?
• Security: Is the loan secured against assets or are there any personal guarantees?
• Documentation: Are the terms clearly set out in writing and properly executed?
• Default consequences: What happens if repayment is missed?

Let’s get started

Need help preparing or reviewing a loan agreement? Speak to our Company Commercial team – we’ll help you document the deal properly and protect your position.