Raising finance for your business can be challenging, particularly in the early stages and if there are insufficient corporate assets to offer as security. In this situation most lenders will require loans to be secured against personal assets or to be backed by a personal guarantee. If the business defaults on the loan, the personal assets can be sold or the guarantor called upon to make repayments to ensure the debt is settled.
Accepting personal responsibility for business debts requires careful consideration and a full understanding of the potential liability being assumed or of the rights being surrendered. This is why, in any case where personal security is requested, the lender will insist on independent legal advice being taken before any paperwork is signed.
At Pengelly Rylands Solicitors in Kent, our team of corporate and commercial lawyers are experienced in providing independent legal advice in a business context, particularly to directors and shareholders who have been asked to provide personal guarantees and to spouses and civil partners who have been asked to agree to the family home or other jointly owned property being used as security.
Our independent legal advice service covers:
- personal guarantees required for corporate loans and mortgages;
- property owner’s consent to a corporate mortgage;
- property co-owner’s consent to a corporate mortgage;
- property occupier’s consent to a corporate mortgage; and
- property owner’s consent to a sale or transfer of equity for businesses purposes.
For independent legal advice in connection with residential property not related to a business matter, please visit our conveyancing services webpage.
Advising businesses throughout Tenterden, Kent and beyond
Independent legal advice needs to be given in person. We have offices in Maidstone, Gravesend, Tonbridge, Chatham and Tenterden to make the process of seeing us as easy as possible.
We can also offer meetings at your place of business or via a skype conference call where needed.
We offer an initial appointment to discuss your requirements at a fixed cost of £180 inclusive of VAT. After that we can arrange flexible payment terms, including monthly billing to help you budget.