Loan and Finance Document Templates

This section provides legally drafted loan and finance document templates for a broad range of businesses. They can be tailored to meet different commercial needs and levels of complexity.

These documents can be used by companies or individuals who wish to raise finance or to provide a guarantee or an indemnity. The portfolio contains agreements with differing levels of complexity to suit a range of business scenarios.

Who Are These Templates For?

These templates are suitable where, for example, you:

✅ need to document a loan between companies, or between an individual and a company
✅ are raising finance and need a clear written agreement setting out the key terms
✅ are providing a guarantee or an indemnity in support of another person’s obligations

They are aimed at business-to-business and owner-managed business arrangements rather than personal consumer lending.

How Is Secured Lending Covered?

Simply-Docs offers a limited range of secured loan agreements, including:

a Debenture, which is a fixed and floating charge over the assets of a borrower; and
a Director’s loan agreement that is secured on the director’s property.

The legal issues surrounding the taking of security are complex. There are various legal forms that can be used, for example:

a chattel mortgage (a mortgage over tangible and moveable property, such as plant and machinery or vehicles)
fixed and floating charges
pledge, lien and assignment by way of security

Security over shares is different again, and can be achieved by way of a legal mortgage, an equitable mortgage or an equitable charge.

Because of this complexity, care is needed to ensure that any security structure is appropriate and properly documented.

What Issues Arise When Taking Security?

For a lender to be able to enforce its security, several issues need to be addressed, including:

The loan agreement must contain a right of enforcement, including detailed provisions regarding when and how a lender can enforce its security. Ideally, the enforcement provisions should be tailored to reflect the nature of the secured asset.
The lender must formally demand repayment.
There must be some agreement as to how the lender takes possession of the secured assets (or, in some cases, how ownership passes in order for the security to be valid, for example in the case of a legal mortgage of shares).
The loan agreement must contain a power of sale in relation to the secured assets.
The security may be invalid unless it is registered at Companies House and in the borrower’s company registers.
If an individual or partnership provides security over chattels, the requirements of the Bills of Sale Act (1878) must be complied with.

In view of the complexity of taking security, you are advised to take legal advice to ensure that any proposed security is enforceable in the event of default in repayment.

When Should You Use These Templates?

These templates will be helpful if you:

✅ are documenting a straightforward business loan or financing arrangement
✅ need written terms for a guarantee or indemnity supporting another party’s obligations
✅ want access to loan and finance agreements with different levels of detail to match the size and risk of the transaction

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