Loan Agreement Legal Advice
There are many situations which may require the drafting of formal loan agreements. This could be in respect of a director or shareholder loan into a company, it may be an inter-company loan or it could be a loan relating to property which also needs to be secured on a property.
It is imperative that parties to a loan agreement take expert legal advice to draft and review such agreements.
Depending on the nature of the Loan Agreement, the parties and amounts involved, Loan Agreements can involve complex legal issues under the Consumer Credit Act 1974 and the Mortgage Credit Directive. Even outside of this legislation, Loan Agreements require careful drafting so that all parties are clear on their obligations, repayment obligations, interest and fees payable as well as the provisions and remedies enforceable in the event of a default.
Ison Harrison Solicitors regularly draft and advise on:
- Loans from Directors or Shareholders into a Business or Company, particularly where there may be other owners in the business and the loan agreement may impact on the ability of the business owners to withdraw dividends or capital from the business;
- Loans relating to property transactions and in particular loans from investors to property experts in consideration of guaranteed or minimum levels of return.
- Business to Business loans, often referred to as inter-company loans, particularly in group structures where there may different ownership structures relating to the parties to the loan.
We also regularly provide independent legal advice on personal guarantees and finance arrangements, including bridging finance, asset finance and business related loans.
If you are considering entering into any form of finance arrangement, whether as a Lender or a Borrower, it is worthwhile taking advice so as to ensure that you are protected.
Whatever your needs or queries, we are here to help. To discuss loan agreements, please contact Richard Coulthard on 0113 2845095.
