HomeFWJ TakeawayCompany rescueBusiness recovery and rescueWhat happens to a business loan if a business fails?

As a business owner you might be concerned with the consequences of a taking out a business loan if a business fails. You will want to understand the circumstances under which the lender can call an event of default and terminate the business loan immediately.

  • at Francis Wilks & Jones we have a team of banking and finance solicitors who regularly deal with reviewing business loan agreements and understand that the way a clause is drafted may affect whether a lender has the ability to call an event of default or not;
  • terms in the business loan agreement which create onerous obligations for the borrower to comply should be reviewed carefully as failure to comply these obligations could lead to an event of default, even if the borrower has kept up with its repayment obligations.

Whatever the nature of your business loan agreement enquiry, Francis Wilks & Jones has a leading team of commercial lending solicitors ready to help you understand your 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 banking and finance is second to none. Whatever your commercial lending enquiry, we can assist. Call us now to speak to a friendly solicitor.

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