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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 Loan and Finance Templates For?

✅ 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:

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 consider legal advice to ensure that any proposed security is enforceable in the event of default in repayment.

Loan and Finance Document Templates is part of Corporate. Just £38.50 + VAT provides unlimited downloads from Corporate for 1 year.

Frequently Asked Questions

Do we need a full loan agreement or will something simpler do? +
Match the document to the risk. A loan agreement sets out full terms, interest, repayment and default mechanics, with short and long forms for different risk levels. A promissory note is a simple signed promise to pay, suited to short term or smaller lending. Guarantees and security documents sit alongside whichever you choose. The Loan Agreement Templates and Loan Note & Promissory Note sections cover both routes.
Can we use these templates to lend to consumers? +
No, they are aimed at business to business and owner-managed business arrangements, not personal consumer lending. Lending to individuals as consumers can be a regulated activity under the Consumer Credit Act 1974 and FCA rules, requiring authorisation and prescribed documentation these templates do not provide. Loans between family members and loans by directors or shareholders to their own company sit outside that regulated territory and are covered.
What options are there if we want the loan secured? +
The portfolio includes a Debenture creating fixed and floating charges over a borrower's assets, a Director's Loan Agreement secured on property, a Chattel Mortgage over specified moveable property and a Security Agreement for securing an existing unsecured debt. Taking security is legally complex: enforcement rights, formal demand, a power of sale and registration all need to be in place, so consider legal advice for anything substantial.
Why does a charge have to be registered at Companies House? +
Because unregistered security is close to worthless. A charge created by a company must be delivered for registration within 21 days beginning the day after creation under section 859A of the Companies Act 2006. Miss it and section 859H makes the charge void against a liquidator, administrator and creditors, with the secured money becoming immediately repayable. Court permission is needed to register late, so diarise the deadline at completion.
What is the difference between a guarantee and an indemnity? +
A guarantee is a secondary obligation: the guarantor pays if the borrower defaults, and it must be in writing and signed to be enforceable. An indemnity is a primary obligation to compensate for a defined loss, standing on its own even if the underlying obligation falls away. Most documents called guarantees combine both, and every Simply-Docs guarantee in this area except the Personal Guarantee Agreement does exactly that.
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