Legal Advice for Business Borrowing

Borrowing and business finance arrangements are often central to business growth, acquisitions, investment, cashflow management and operational stability. The legal terms of borrowing can have a significant impact on the business, its assets, directors and future flexibility.

We advise businesses, directors, shareholders and investors on a wide range of business borrowing and finance arrangements. This includes reviewing, negotiating and preparing finance documentation, advising on risk and security arrangements and assisting businesses in connection with funding transactions and refinancing.

We act for owner-managed businesses, SMEs, larger companies and investors across a wide range of sectors.

Why Businesses Instruct Us

Business borrowing arrangements are rarely just about securing finance. The structure and terms of borrowing can affect future growth, operational flexibility, shareholder relationships and the overall risk profile of the business.

Our approach is commercial and pragmatic, with a focus on helping businesses complete funding arrangements efficiently while understanding the longer-term implications of the borrowing structure.

How We Help

We advise businesses on a range of borrowing and finance matters, including:

• Commercial loan agreements

• Secured lending arrangements

• Director and shareholder loans

• Personal guarantees

• Debentures and fixed and floating charges

• Refinancing arrangements

• Acquisition and growth funding

• Property backed business lending

• Invoice finance and asset finance arrangements

• Inter-company lending arrangements

• Security documentation

• Amendments and variations to existing finance agreements

We regularly review lender documentation prepared by banks, private lenders, investors and alternative finance providers.

Reviewing and Negotiating Loan Agreements

Loan agreements and finance documents can contain significant obligations and restrictions which may affect the business long after funding is completed.

We regularly advise on issues including:

• Repayment obligations and default provisions

• Financial covenants

• Security and charging arrangements

• Personal guarantees

• Events of default

• Restrictions on future borrowing

• Director obligations and liabilities

• Information and reporting obligations

• Early repayment and termination provisions

• Priority arrangements between lenders

We also assist businesses in negotiating amendments where terms may create unnecessary operational or commercial risk.

Security for Commercial Loans

Many business lending arrangements involve security over business assets or personal guarantees from directors or shareholders.

It is important that businesses and individuals understand:

• The extent of security being granted

• What assets may be at risk

• The consequences of default

• The scope of any personal guarantee

• Whether guarantees are limited or unlimited

• The lender’s enforcement rights

We regularly advise both businesses and individuals in relation to these issues as part of wider borrowing transactions.

If Problems Arise

Financial pressure, covenant breaches or disputes with lenders can create significant operational and legal issues for businesses.

Where problems arise, we can assist with:

• Reviewing lender rights and enforcement options

• Negotiating revised repayment arrangements

• Advising on defaults and covenant breaches

• Refinancing and restructuring discussions

• Disputes relating to guarantees or security arrangements

Where necessary, we also work closely with our commercial litigation and insolvency teams.

Contact Us

If you require advice on business borrowing, finance agreements or funding arrangements, please contact our team to discuss how we can assist. Early legal advice can often help businesses identify risk, improve negotiation positions and avoid issues developing later in the transaction or lending relationship.