Borrowing money

Welcome to Francis Wilks & Jones, one of the country’s leading firms of commercial finance lawyers. We assist businesses on a range of “borrowing money” enquiries, ranging from business loan advice, business loan contracts, small business loans, start-up business loans and many other types of finance facility.

Whatever your enquiry, please do contact us on 020 7841 0390 and we will endeavour to assist you.

1. Borrowing Money

Most businesses will need to borrow money at some point in their existence, whether it is to fund growth and investment or for cash flow purposes.  Depending on your needs and financial position, there are different types of business funding which you can consider – ranging from business start-up loans, small business loans, secured business loans, unsecured business loans and many other types of specialist funding arrangements allowing you to borrow money.

Regardless of whether you are a business which has just started trading and are looking for a small business loan or you are a large well-established corporate business, the commercial finance team at Francis Wilks & Jones can provide expert banking and finance legal advice on your loan arrangements, including both unsecured business loans and secured business loans.
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2. What is a Business Loan Agreement?

We are often asked “what is a Business Loan Agreement”. It is a contract between a business and a lender under which the lender agrees to pay the business an agreed sum and the business agrees to repay that loan, with interest, over a period of time.  Before entering into a business loan agreement, business loan advice should be sought and careful consideration made to weigh up the advantages and disadvantages of taking out the business loan you are being offered.
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3. Is a Loan Agreement a Contract?

A loan agreement is a contract between a borrower and a lender which provides the terms under which money is to be loaned and when it is to be repaid.  Business loan agreements are usually executed as simple contracts. If you are entering in to a Loan Agreement it is vitally important that you understand the meaning of the clauses in it and also ensure that it is validly executed. At Francis Wilks & Jones we have a team of banking and finance experts who are able to help you in this regard.
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4. Why is a Loan Agreement Important?

We are commonly asked “Why is a Loan Agreement Important”. Loan agreements are important because they state what is being loaned and the terms on which the borrower must repay the business loan.  They provide clarity to both lender and borrower and can be relied upon in court if future disputes arise.  Whether you are a lender or a borrower, we recommend that legal advice is taken at the outset of the Loan Agreement to ensure it is fully understood and all aspects of the business loan are legally correct.
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5. What Should a Loan Agreement Include? 

It is normal practice to draft a loan agreement from an existing loan agreement template which is adapted to the requirements of the specific transaction.  Most precedents and loan agreement templates will have standard terms which are common to all business loan agreements. 

If you are a borrower you may want to understand why certain terms commonly appear in your business loan agreement.  We are regularly asked by our clients “what Should a Loan Agreement Include” and we review their business loan agreements to ensure that they encompass all the complexities of commercial lending and are clearly drafted to protect their interests.
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6. What are the Different Types of Bank Loans?

There are a variety of loans available from banks and other funders.  At Francis Wilks & Jones our banking and finance team advise clients on all types of business loan agreements. We are often asked “what are the different types of bank loans” and our expert team is able to provide all the answers you need.
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7. Business Loan Advice

As a business owner you may to wish to obtain business loan advice before entering into a loan agreement.  Business loan advice may be sought from an independent financial advisor to advise you on the types of loan products which would be most appropriate to your business.  Once you have decided on the type of loan you would like to enter into and found a funder who will provide this to you, you may wish to seek legal advice on your business loan.

At Francis Wilks & Jones we can put you in touch with trusted independent brokers who can help you in this aspect.
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8. Business Loan

You may have a question to ask about your business loan.  From searching online you will find a wide range of different business loans, but you may ask which is most appropriate for my business?  By undertaking further research into the types of funders, repayment terms and amount which can be borrower, you should be able to narrow this down to select a loan structure which best suits your needs. 

You may wish to seek independent financial advice if you would like further information about different financial products available.  Once you have identified your business loan funder and they have provided you with a draft of the contract you may want to seek legal advice to ensure you understand the terms of the business loan and how this could affect you.

At Francis Wilks & Jones we can put you in touch with trusted independent brokers who can help you in this aspect.
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9. Business Loan Contract

You may want to know how you go about creating a business loan contract.  Like any contract, careful consideration must be taken before each party signs the loan agreement, as it will create a legally binding document. 

A large variety of business loan contract templates are readily available for you to view online.  The selection online, however, merely provides a snapshot of the types of business loan contracts which could be used, but may not be suitable for your specific transaction.  Business loan contract templates when successfully tailored can provide you with an effective loan agreement which contains all the negotiated terms relevant to you.
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10. Small Business Loans

You may have questions about small business loans.  In essence, these are arrangements which involve funders lending money to small business and medium sized business (SMEs).  Well, what is the definition of an SME?  The answer to this question will depend on sector you work in, but broadly can be defined as a business with less than 250 employees with a turnover of less than £50 million.  SMEs may be very recently established start ups or could have been trading for many years.  Small business loans can provide SMEs with the funding necessary for capital expenditure or for cash flow purposes.
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11. Small Business Funding

You may ask, “What is small business funding?”  This covers lending arrangements under which funders provide small businesses with loans.  Taking a cursory look at the press will give you an indication of the funding gap which many small businesses face.  To decide which lending instructions and loan products are best for your business, you can do your own research into the loan market or seek independent financial advice.

At Francis Wilks & Jones we can put you in touch with trusted independent brokers who can help you in this aspect.
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12. Start Up Business Loans

You may ask “What are start up business loans?” These are funding arrangements provided specifically to start up businesses to assist them with financing. Start ups are recently established businesses which are often funded by the founders bankrolling their operation.

If you are a start up business owner you may be facing a funding gap as you try to establish your business.  You may whish to use the loan monies to channel capital expenditure into your business to invest in further machinery or larger premises.  Alternatively, the monies may need to be used to help cash flow and pay for daily expenses.
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13. Unsecured Business Loans

You may want to know what unsecured business loans are.  These are lending arrangements which involve a funder providing a loan to a business without taking a charge over the borrower’s assets or without receiving a guarantee or indemnity to act as a safeguard in the event of the borrower’s default.  Unsecured business loans are generally considered as a higher risk form of lending because if the borrower defaults the funder will be an unsecured creditor with limited prospects of recovering its monies.
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14. Getting a Small Business Loan

As a small business owner you may want to know more about getting a small business loan. 

The starting point for you may be going to your local bank to work out what funding options are available to you.  If you would prefer to seek financing from alternative funders carrying out your own research online may assist you in discovering the types of small business loans on offer.  After you have decided on the type of loan you require you may wish to seek legal advice on the drafting pf your small business loan agreement.

At Francis Wilks & Jones we can also put you in touch with trusted independent brokers who can help you to find the loan you are seeking.
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15. Business Loan Agreement

You may ask, “What is a business loan agreement?”  Basically this is a contract which sets out the terms of the loan which has been provided by a funder to a business.  Business loan agreements can be complex documents to draft and your understanding is vital as you will be bound by the terms of the agreement.

Whatever the nature of your secured business loan enquiry, Francis Wilks & Jones has a leading team of banking and finance solicitors to help you understand your business loan agreement.  We have broad expertise in drafting loan agreements and can advise you on the entire agreement or on specific business loan clauses.  Our knowledge of business loan agreements is second to none. 

Whatever your finance and banking enquiry, we can assist.  Call us now to speak to one of our friendly solicitors.
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16. Loan Agreement

“What is a loan agreement?” Essentially this is a lending arrangement which sets out the terms under which a lending institution provides financing to a borrower.  As a borrower you will want to understand the terms of the loan agreement before you enter into a contract to ensure that your business interests are protected.
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17. What are the types of lending?

If you are a business owner interested in borrowing money for your business, you may have the question, “What are the types of lending which would best suit my business?” By searching the internet you will discover many different types of loan structures, but not all of these would be relevant for your business model.  It is necessary to work out the reasons for you wanting to take the loan and the types of financial providers you would like to deal with.

At Francis Wilks & Jones we can also put you in touch with trusted independent brokers who can help you to find the loan you are seeking.
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18. Does a Loan Agreement need to be Witnessed?

We often get asked, “Does a loan agreement need to be witnessed?”  The simple answer to this question is not if the loan agreement is governed by the law of England and Wales.  The loan agreement can be validly executed by signing as a simple contract.  Although this might seem straightforward, there are other formalities which must be complied with to ensure that you have a legally binding loan agreement.
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