Large commercial projects will often require financing from more than one lender and this will involve multiple charge forms and other security documents such as deeds of priority or postponement.
It is vitally important that these documents are thoroughly checked and that the borrower has sought legal advice to avoid any problems at a later date. Our commercial team offers a free initial no obligation discussion andwe often see that businesses receive a better outcome when one of our experts is brought on board from an early stage, so why not take advantage of this offer and get in contact today.
Below you will find some background information on the legal facts surrounding this area of the law, to help you get an idea of your options.
Legal Facts…
- Lenders will normally want security for any lending they make whether to individuals or businesses. This can range from guarantees to charges, mortgages and in the case of companies, debentures.
- The security will often be taken over land, whether freehold or leasehold, but in a commercial context can be over fixtures, fittings, equipment, machinery and intellectual property rights like patents and designs. Usually the security will be heavily weighted in favour of the lender and in some cases may prejudice the flexibility of the borrower to run his business.
- Commercial projects will often require financing from more than one lender and this will involve multiple charge forms and other security documents such as deeds of priority or postponement.
See also our Shops & Offices, Agricultural and Pubs, Clubs, Hotels & Restaurants fact sheets (PDF).
