If you are considering providing or taking a loan, it is vital to put in place a loan agreement.
Sometimes people feel uncomfortable about asking for a loan agreement to be put in place and worry that it suggests that they don’t trust the other person to repay it.
But this shouldn’t be the case at all. There are a whole host of things that it is important to be clear about – when the loan is due to be repaid, any interest to be charged, any circumstances when the loan can be called in early, and any restrictions on what the loan can be used for.
A loan agreement helps to ensure that everybody is on the same page and actually helps to prevent people from falling out, which could otherwise happen if they later discover that they had different understandings of what they thought they had agreed.
How we can help
If you are considering taking out a loan or providing a loan, we can discuss with you how putting in place a simple loan agreement can give everybody peace of mind that everything has been properly agreed.
Our experienced team regularly help our clients negotiate and draft such agreements and would be happy to discuss with you, your particular set of circumstances and how we can help.
Recognised and recommended
Our Business & Commercial team are recommended in three categories in The Legal 500 UK 2022 – with several colleagues receiving special recognition and head of department Jamie Arnall acknowledged as a ‘Next Generation Partner’.