A secured business loan can take numerous forms, for example it may be granted over property in the form of a mortgage or may be a charge over specific assets owned by a company, such as plant and machinery.
Guarantees and indemnities can be granted which involve a third party taking on the liabilities of the debt in the event that the borrower cannot keep up with repayments.
At Francis Wilks & Jones, we have a team of banking and finance solicitors ready to take your call and help you with your secured business loan enquiries. Our experts have identified some of the forms of security which you may find in your secured business loan:
- legal mortgages – these are created by the transfer or assignment of legal title to an asset by way of security. The mortgagee will need to transfer the title back to the mortgagor once the charge is paid off by the mortgagor.
- charges – unlike a legal mortgage a charge is an equitable interest as it does not involve the transfer of an asset. A charge enables the chargee to take possession of the charged asset and apply the proceeds in discharging the obligations of the chargor. Charges can either be fixed or floating and it is possible to create a charge over future assets.
- debenture – this is a form of loan document evidencing a business loan obligation and typically includes both fixed and floating charges.
- liens – these can be created under common law or by an agreement. They give the creditor the right to keep ownership of an asset until an obligation has been discharged.
- pledges – these are formed by the physical transfer of possession of an asset to a pledgee by a pledgor. The pledgee has a power of sale if the pledgor defaults on its payment obligations.
Please contact one of our expert banking and finance team for your friendly informal consultation. At Francis Wilks & Jones, we have significant experience in advising on a broad range of secured business loans. We are highly skilled and have helped many companies which require advice on business loans. Whatever your situation, don’t delay. Call now for a friendly consultation.