Lending money

Welcome to Francis Wilks & Jones, one of the country’s leading firms of commercial finance lawyers. Whatever your enquiry with regard to lending money, we are the experts to advise you. Contact one of our friendly solicitors now on 020 7841 0390 and we will be happy to help.

1. Lending Money

In general terms lending money is the advancement of money to a person or business with the expectation that it will be repaid in the future. 

If you intend to lend money you will want to make sure that both you and the borrower have a clear understanding of the terms in the loan agreement and that the loan is properly secured in order to make sure that your money is repaid.  The clearer the terms of the loan document, the less the likelihood of a dispute arising and the easier it will be to enforce repayment if required. Using a loan agreement template might seem like a quick solution but it is important you get the terms right.  At Francis Wilks & Jones we can assist you in drafting a loan agreement.
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2. Loan Agreement

“What is a loan agreement?” is a question we often deal with.  A loan agreement is the document which lays out the terms on which a lender advances monies to a borrower. Francis Wilks & Jones can provide the expertise you need to ensure the loan agreement you want is right for you. Using loan agreement templates without advice can at times be dangerous.  It is important to understand the terms of any loan agreement and not just relay on a catch all loan agreement template. This is true for both a lender and a borrower.
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3. Loan Agreement Template

We are often asked, “what is a loan agreement template?”  You may start your research online and discover a plethora of loan agreement templates available, for example LMA loan agreements, invoice finance agreements or cash flow loan agreements.  These are precedents, sometimes also known as boilerplates which can be adapted to suit your lending transaction.   Whilst useful to an extent, using loan agreement templates without understanding them or being fit for the particular loan agreement transaction can be dangerous. At Francis Wilks & Jones we act for borrowers and lenders making sure the loan agreement template is fit for purpose.
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4. Simple Loan Agreement

“What is a simple loan agreement?”  The answer to this question depends on what you perceive as simple.  The term “simple loan agreement” can be used to describe a lending arrangement between one borrower and lender which is also known as a bilateral loan, but it is arguable that this term is not a good description as bilateral loans, can be very complex documents.   Most loan agreements contain negotiated terms and mechanisms which will add a level of complexity.  It is therefore difficult to label a document a “simple loan agreement.”
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5. Loan Contract

A loan contract is an agreement between a borrower and a lender which provides the terms under which monies are to be lent and when they are due to be repaid.  It is a form of loan document. Loan contracts are signed under hand which means that they are not executed as deeds, but as simple contracts.   At Francis Wilks & Jones we have a dedicated team of banking and finance lawyers who are able to help you with how to validly execute your loan contract.
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6. Loan Document

“What is a loan document?” is a question you may have.  Put simply, a loan document is another word for a loan instrument and documents the terms on which a lender advances monies to a borrower. At Francis Wilks & Jones we deal with all types of loan agreement enquiries, from loan agreement templates, simple loan agreements, loan contracts and loan documents.
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7. Lending Agreement

You may ask: “What is a lending agreement?” Essentially, this is another name for a loan agreement, loan contract, loan document or loan instrument.  The lending agreement has a dual function, it will document the terms of the loan, including the amount borrower and repayment terms and also act as evidence that a legally binding contract has been signed in the event of a dispute arising.
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8. What does Lending mean in Banking Terms?

We are often asked, “What does lending mean in banking terms?” This is when a lending institution advances money to a borrower under a loan contract often referred to as a facility agreement.  The borrower can be an individual or a commercial structure, such as a company or LLP and the lending institution may be a retail bank or an alternative lender, such as an asset management company or peer-to-peer lender.
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9. What should a loan agreement include?

You may ask, “What should a loan agreement include?” The answer to this question generally turns on what the loan is intended for and what has been negotiated and agreed by the parties.  There are, however, certain terms which are commonly seen in any loan agreement.

Usually, to create a lending agreement an existing loan agreement template is adapted to suit the requirements of the specific transaction.  Most loan agreement templates and precedents will have standard terms which are common to all loan agreements. 

If you are a lending institution you may already have loan agreement templates in place which you use for your ongoing transactions.  We are regularly asked by our clients to review their loan agreement templates to ensure that they encompass all the complexities of commercial lending and are clearly drafted to protect their interests. It is always sensible to take care when using loan agreement precedents – they need to be checked and fit for purpose for any particular transaction.
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10. Loan Agreement between Borrower and Lender – what terms should be negotiated?

You may have questions about what terms should be negotiated in the loan agreement.  The lender will want to incorporate clauses to provide it with sufficient protection in the event of a default and to ensure that it can charge relevant fees to the borrower.  Contrastingly, the borrower will not want to come across fees which it was not expecting to pay after it has taken out the loan.  It is therefore vital that the borrower understands the interest rates, fees and costs which it can be charged during the lifetime of the loan.

Whether you are a business owner or a lending institution, we can assist you with any legal queries that you might have in relation your lending agreement.  Francis Wilks & Jones have a team of experts you can contact for legal advice on loan agreements.
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11. Types of Security

Security can take many forms, for example it may be granted over property in the form of a mortgage or may be over specific assets owned by a company, such as plant and machinery.  Security can also be taken over intangible assets such as intellectual property, including registered trademarks and patents.

If you are a funder and would like to know more about the types of security which you can take to secure your loan contract, we have a broad knowledge of this area and will be able to assist you with any queries that you might have.
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12. Lending Risks

From a funder’s perspective one of the most common concerns is that the borrower may default on repayments and be unable to repay the amounts due under the loan agreement.  There are a number of ways the lender can protect itself from these risks, for example, by taking security over the borrower’s assets or obtaining a guarantee or indemnity from the parent company of the borrower.
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