Company Commercial Law

Borrowing, Lending & Security

Advising borrowers and lenders on a range of financing transactions
Including general corporate loans, refinancing, acquisition finance and real estate finance.

Why seek legal advice

Businesses often need loan facilities to enable them to carry out their day to day activities or to buy other companies or assets.  Our lawyers can help with documenting the terms of these loans and any related security.

We also have particular expertise in advising on one-off private loans to and from family members and friends.


  • Understanding the documents
  • Certainty of the terms
  • Getting the law right
  • Avoiding errors
  • Clarity on the process
  • Feeling supported
Commercial loans
Commercial finance lawyer

Why choose HK Law?

Trying to understand the terms of lending and security documents can be a daunting prospect.  We will explain the legal terms to you in simple language that you can understand.

Our role is to make the process simple, smooth and efficient and to get the job done.

  • We keep things simple - we don’t overcomplicate matters or make a transaction more complex than it needs to be
  • We explain things clearly
  • We are approachable and contactable
  • We make the process as smooth and efficient as possible
  • We keep up to date on legal developments
Alexandra Clapp, HK Law

Your questions answered

Alexandra Clapp, Partner in Corporate & Commercial Law Team
  • What is the process involved in putting in place a standard corporate loan facility?
    The lender will issue a “term sheet” which covers the principal terms of the loan. The lender’s lawyer then usually issues the draft loan agreement and any draft security documents. The borrower’s solicitor will review and negotiate these documents. Various “conditions precedent” usually need to be met before funds are made available.
  • What are the key terms of a loan agreement?
    A loan agreement will cover the amount being lent, what interest rate is being applied to the loan, whether the loan can be prepaid early, the term of the loan and circumstances when the lender can demand early repayment. The borrower will also usually be asked to give certain warranties (statements of fact) and confirmations about itself and its business.
  • What are the common types of loan facility for a business?
    An overdraft is a form of debt and is repayable on demand. A revolving credit facility allows a line of credit that the borrower can draw down, repay and draw down again. A term loan is taken out for a period of time and either repayable in one go at the end of the term, or repaid over the term of the loan, or both.
  • When can a lender demand repayment of a loan?
    “Events of default” will be specified in the loan agreement. These are circumstances which, if they occur, could entitle the lender to demand repayment of the loan. They often include: non-payment of any amounts due under the finance documents, failure to comply with the terms of the finance documents and insolvency events of the borrower.
  • What are the main types of security?
    A lender often asks for security over assets so that, if the borrower is unable to repay the loan, the lender can rely on the security to recoup its money. The security may take the form of a debenture (over all the assets of a company), a legal mortgage over property, a fixed charge over certain assets or a charge over shares. A lender might also ask for personal guarantees.
  • How long will the process take?
    It depends on the nature of the transaction. On a standard corporate loan facility, we would normally expect documenting the loan and security to take 4-6 weeks. On a more complex corporate lending such as an acquisition finance facility, this could take 8-10 weeks. For a simple loan agreement and security document this could take 3-4 weeks. The timing often depends on a number of factors though, so it can vary.
  • I am buying another company and am financing part of the acquisition price by way of debt, can you advise on the debt documents?
    Yes. We have extensive experience in advising on acquisition finance facilities. These tend to be term loans often with a revolving credit facility as well. We will guide you through the loan agreement and the security documents step by step.
  • I want to make a loan to a family member or a friend, can you help?
    Yes. Where individuals are involved, lending and mortgage arrangements are quite heavily regulated. However, there are exemptions in certain circumstances. We can look at the legal requirements and tell you whether an exemption applies. We have vast experience in advising on these types of private loans and the related security.

By Darren Francis, Associate Solicitor

Find a Company Commercial Law expert in your area

HK Law Blandford office


The newest of the HK Law offices and proud to service the people and businesses of Blandford and the surrounding area.

HK Law Bournemouth office


Our Bournemouth Solicitors, based at our office in Southbourne, are here to support you with all the personal and business legal needs.

Somerset Solicitors


HK Law’s history in Crewkerne dates back to 1749, making it the longest standing solicitors firm in the country.

HK Law Blandford office


With offices at 40 High West Street and 1 Colliton Walk, our expert team provides a comprehensive range of legal services to the people of Dorchester and surrounding areas.

HK Law Parkstone office


Our Parkstone solicitors, based in the heart of Ashley Cross, are here to offer you expert local legal advice.

Poole Solicitors


Our HK Law team in Poole assist local clients with their legal requirements.  Local to you, we are always on-hand to meet up whenever it suits you.

HK Law Swanage office


HK Law have held a strong presence in Swanage for generations. When it comes to client care, we pride ourselves on a modern approach backed up by traditional values.

HK Law Wareham office


Wareham is the office from which HK evolved. Today our Wareham office prides itself on offering the town a full range of legal services whilst keeping things simple and personal.

Our Borrowing, Lending & Security team

Associate FCILEX

Managing Partner

Chartered Legal Executive

Private Client Executive


Conveyancing Executive



Associate Solicitor