fbpx

Guarantees

For many businesses, applying for a bank loan is necessary for the growth and longevity of the company. However, in some cases lenders may ask for additional assurance before granting a loan. They may want to hold a third party liable for the obligations of the debtor in the event they do not fulfil the obligations originally agreed upon. In other words the lender can request a guarantee, a binding legal agreement, whereby the guarantor will on default satisfy the debtor’s obligations.

For example, if a company wishes to apply for a bank loan, the bank may require the director to be held personally responsible for paying back that loan if the company finds itself in a position where it cannot pay off the debt. As you can imagine, this can be of great personal risk and therefore some banks request a certificate from a lawyer stating that the director has received legal advice and fully understand their obligations before signing.

The team at Lynn & Brown Lawyers can provide you with the right legal advice helping you make a decision that protects your assets and financial future.

If you have been asked to stand guarantor for a bank loan, give us a call today to make an appointment and have a chat to one of our experienced fixed fee commercial lawyers.

Get In Touch

    Feel confident about the cost

    with our Agreed Fixed Pricing

    Pricing

    Other Areas of Commercial Law

    BUSINESS

    We offer a range of legal advice for anyone owning their own business, looking to…

     

    READ MORE

    PROPERTY LEASING

    As many small business owners know, one of the most important assets of a business…

     

    READ MORE

    CONTRACTS

    A contract is a legal document between two or more parties that clearly spells out…

     

    READ MORE

    NOTARY PUBLIC

    Also known in Australia as a Public Notary or Notary, they are senior lawyers that…

     

    READ MORE

    PROPERTY LAW

    We provide advice on various areas of Property Law, including property…

     

    READ MORE

    You Might Be Interested In Reading

    Think twice about going guarantor

    Read More

    We can find a solution for you.