Independent legal advice on business guarantees and third-party security
Commercial transactions often require someone outside the borrowing company to stand behind it, or to put up an asset as security. Independent advice makes the extent of that commitment clear before it is given.
From £295 · one person advised
When this is useful
Situations this service is for
- You are giving security over property or assets for a company's or another person's borrowing.
- A supplier, franchisor or landlord requires a guarantee from you personally or from a related company.
- You are a director of a group company being asked to guarantee another group company's obligations.
- An acquisition or refinancing requires cross-guarantees between companies.
- You are being asked to sign an indemnity alongside, or instead of, a guarantee.
What we do
The work itself
- Explain the difference between a guarantee and an indemnity, and which of the two you are actually being asked to give.
- Identify what is secured, and whether the security extends to future or unrelated liabilities.
- Explain the enforcement route and what would be at risk.
- Highlight any waiver of the protections a guarantor would otherwise have.
- Complete the certificate required by the party seeking the security, where we are able to do so.
Before you book
What to send us
- 01The guarantee, indemnity, debenture or legal charge.
- 02The underlying agreement it supports.
- 03Details of the asset or property being offered as security.
- 04Any certificate template or instructions provided.
- 05The transaction timetable.
What happens
How the work runs
- 01
Scope confirmation
Commercial security packages often run to several documents. We confirm which of them we are advising on before the appointment so the scope is unambiguous.
- 02
Identity and conflict checks
We confirm we act for you alone and not for the company, the lender or any other party.
- 03
A private appointment
We take you through the commitment and the circumstances in which it would be called upon.
- 04
The asset at risk
Where security is being given over a specific property or asset, we are explicit about what enforcement would involve.
- 05
Certification
Where the requirements are satisfied, the documents are signed and the certificate completed.
What you receive
Deliverables
- Confirmation of exactly which documents the advice covers.
- A private appointment with the solicitor advising you.
- The completed certificate, where we are able to give it.
Fee
From £295
This price assumes
- One person advised
- A straightforward document set
Included
- Review of the document and any lender or transaction-solicitor requirements
- A private appointment with the solicitor advising you
- Explanation of the legal effect, the obligations and the material risks
- Completion of the certificate where the requirements are satisfied
Not included
- Negotiating the terms of the underlying transaction
- Advice to any other party to the document
- Advice on tax consequences
Prices are indicative minimums for matters within the assumptions shown. We review the document and confirm a fixed fee in writing before any work begins. No legal advice is given during the free initial assessment.
All fees and what changes themQuestions
Common questions
- There are six documents in the pack. Do you advise on all of them?
- We confirm the scope in writing before the appointment. It is common to advise on the guarantee and the security document, and to note the others without advising on them. What matters is that you know which is which.
- Is an indemnity worse than a guarantee?
- It is usually wider. A guarantee is secondary to the borrower's obligation; an indemnity can stand on its own. Which you are giving is one of the first things we establish.
- Can you advise several guarantors at once?
- Sometimes, where their interests are aligned and no conflict arises. Where interests differ, each person needs their own advice, and we will say so.
Send us the document and we will confirm whether we can assist.
You will get a straight answer on scope, fee and timing before any work begins.
Enquiries receive a response within one working day.