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Raising Finance

For most businesses to grow they require finance, usually by borrowing money off a high street lender. Raising finance is a relatively straightforward procedure and is ultimately controlled by the lender. However, most documents used to agree the finance are legally binding and therefore require legal advice before they are entered into.

Ashton Morton Slack are fully experience in advising on the legal consequences of entering into such documents. Please call to book an appointment with one of our solicitors if your have a Personal Guarantee, Loan Agreement, and Debenture on which you will need legal advice.

For most companies, before they can borrow there are various matters which must be dealt with. The first of these is to check the company's Articles of Association. Most companies have an implied power to borrow at least where the loan is to be used for the purposes of the business. Before the loan can be entered into the shareholders of the company must first approve the loan subject to the provisions in the Articles of Association.

There are different ways of raising finance, but it is commonly the case that the lender will require security for the loan. Security usually comes in the form of a charge, whether it be a fixed charge, floating charge, a mortgage or all three. Security like a charge allows the lender to sell the asset over which the charge is secured should you default on payment.

If a company is taking the finance, then the charge will be in the name of the company. Therefore Companies House (the regulatory and governing body of all companies) will require the registration of the charge within 21 days of its creation. If it is not registered within 21 days then it will make the charge void. Here at Ashton Morton Slack we are fully experienced in the taking of finance.