Loan Agreements

In short — A loan agreement records exactly what has been agreed, protects the lender and helps avoid disputes — especially between partners, directors, shareholders or family.

A loan agreement makes sure everyone understands exactly what has been agreed from the outset. Without a written agreement, disputes can arise over even the most basic terms, particularly where loans are made between business partners, directors, shareholders or family members. A clear agreement helps preserve relationships and reduces the risk of costly litigation. Informal lending arrangements often lead to misunderstandings, particularly where relationships later break down.

We can help you with:

• Setting out the amount loaned, repayment terms and timescales, interest provisions and what happens on default
• Protecting the lender with security provisions, personal guarantees, default interest clauses and rights to demand early repayment
• Clarifying each party’s rights, responsibilities and the procedure if financial difficulties arise

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