Banking and Finance
Business finance is a key part of expansion and growth for most businesses and, no matter what the economic climate, most businesses will need financial backing at some stage. At Tinsdills, we have a dedicated team of business law solicitors with the experience and expertise to advise both lenders and borrowers on a variety of security and banking documents.
Expert Financial Advice
Most businesses will require financial involvement at some stage, whether for expansion or growth or when the business is operating at a less-than-desired level.
Our expert business law solicitors regularly act for both lenders and borrowers on a diverse range of financial matters. We have strong relationships with finance brokers and we advise both lenders and financial organisations as well as corporate borrowers (ranging from individuals in business to SMEs and larger corporations). We can provide you and your organisation with advice on a variety of security documents, facility and loan agreements, and other ancillary documents necessary for the arrangement of finance. Areas we cover include:
- asset-based finance;
- invoice financing;
- corporate and private banking;
- farming finance;
- project finance;
- real estate finance; and
- restructuring and insolvency.
At Tinsdills, we provide bespoke advice and agreements, tailored to the needs of your business. We will take time to understand your business and its financial requirements, to ensure that your transactions run as smoothly and as cost-efficiently as possible.
Whilst you may not always need a written loan agreement, it is strongly advised that such an agreement is entered into in contemplation of any loan being made as it will document the key terms of the loan, such as payment terms, drawdown period, any interest provisions and enforceability of any security. The length and nature of the loan agreement itself will depend on (amongst other things) the size of the loan being given, the basis on which the loan is being made and whether any security is being given.
It is quite common for intragroup company loans to be made as part of any group finance structure and these are often dealt with by way of accounting entries. On that basis, it is not always necessary for cash to physically transfer between the different entities on the loan being made. However, the directors should be mindful that any loan will still be potentially repayable, even if no cash was physically received, and this could cause issues if the lending group company later becomes insolvent. There may also be tax implications relating to the loan and how it is documented.
The amount and nature of any security required will depend on a number of factors, including the size of the loan and length of the term over which it is given, the lender’s appetite for risk and the current economic climate. Examples of types of security lenders may require include a debenture over the business and assets of a company; a legal mortgage over property; a fixed charge over assets and intellectual property; a floating charge over bank accounts and stock; personal guarantees from directors of the company; parent company or cross guarantees and indemnities from group companies (guaranteeing the obligations of each other); and/or pledges or liens.
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Contact Us To Discuss Corporate Law
If you have questions regarding Corporate Law, or wish to discuss your case with our team, we’d be happy to hear from you. Contact your nearest branch today.
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Tinsdills Solicitors – managing all aspects of Corporate Law across Staffordshire, Cheshire, Derbyshire and Shropshire.
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