Our Loan Agreements are consistently some of our most popular Corporate templates and are designed for use by a broad range of SME businesses. They cover the necessary legal and practical considerations relevant to the lending of small to medium sized amounts.
In order to make our templates more user-friendly and provide greater clause flexibility and choice, we have updated both our Long and Short Form Loan Agreement templates to add different repayment options. Loans are normally repaid either in a single amount or in instalments. A loan repaid in a single amount is known as a bullet repayment, whilst a loan that is repaid in instalments is known as an amortising loan. For some borrowers, such as those whose businesses are seasonal, repayments can now be adjusted in the template to better reflect this.
We have also updated our popular Long Form Loan Agreement - Unsecured with additions for best practice, in particular the inclusion of a drawdown mechanism and formal drawdown notice within the body of the agreement. This has been included to establish a clear mechanism for requesting when the loan is to be advanced and into which account the funds should be deposited.
The contents of this Newsletter are for reference purposes only and do not constitute legal advice. Independent legal advice should be sought in relation to any specific legal matter.