A loan agreement is a formal contract governing borrowing, and can be either secured or unsecured.
Secured loan agreements involve putting up assets as security against the money advanced. If the loan is not repaid the assets can be seized.
Unsecured loans do not require you to put up assets as security and are based on your credit rating, financial status and how much you want to borrow. As such, it is essential that a properly drafted agreement clearly sets out the terms and conditions under which the money has been lent.
Obtaining legal advice can be money well spent to safeguard your interests whether you are a borrower or a lender.
How we can help
At Else Solicitors, we can advise you whether there is any scope for negotiation in the terms of the agreement you have been offered. We can also give you a clear and comprehensive explanation of the conditions behind the loan agreement.
We can ensure you understand the benefits and risks of any agreement and help you protect your interests, whether you are embarking on a short and simple loan arrangement or a highly complicated borrowing package.
For more detailed legal advice in relation to loan and facility agreements, please contact the banking and finance team on 01283 526200, alternatively you can send us a message and we will get in touch at a time that suits you.