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Company Loan Request Letter for the United Kingdom

Company Loan Request Letter Template for England and Wales

A Company Loan Request Letter is a formal written application from a company to a potential lender, typically a bank or financial institution, requesting a loan facility. Under English and Welsh law, this document serves as the initial formal communication outlining the loan requirements, company's financial position, and proposed terms. It forms the basis for subsequent loan negotiations and documentation, incorporating necessary compliance with UK financial regulations and corporate lending requirements.

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Company Loan Request Letter

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What is a Company Loan Request Letter?

A Company Loan Request Letter is a crucial document in corporate financing under English and Welsh law. It is used when a company needs to formally approach a lender for financial assistance, whether for working capital, expansion, or specific project funding. The letter should include essential information about the company's financial status, loan amount requested, intended purpose, proposed repayment terms, and any security offered. This document typically initiates the formal loan application process and must comply with UK financial services regulations and corporate lending requirements.

What sections should be included in a Company Loan Request Letter?

1. Company Details: Full registered name, company number, registered address

2. Loan Amount Request: Specific amount being requested and currency

3. Purpose Statement: Clear statement of intended use of funds and business justification

4. Proposed Terms: Suggested repayment period, interest rate, and payment schedule

5. Financial Position Summary: Brief overview of company's current financial status and ability to repay

What sections are optional to include in a Company Loan Request Letter?

1. Security Details: Details of any collateral or security being offered to support the loan request

2. Business Plan Overview: Brief summary of business strategy and financial projections

3. Banking Relationship History: Overview of existing banking relationship and previous lending history

4. Market Position: Description of company's competitive position and market opportunities

What schedules should be included in a Company Loan Request Letter?

1. Schedule 1 - Financial Statements: Recent annual accounts and management accounts

2. Schedule 2 - Cash Flow Projections: Detailed forward-looking financial projections showing ability to service the loan

3. Schedule 3 - Company Profile: Detailed company history, operations, and management structure

4. Schedule 4 - Directors' Information: CVs and background information of company directors

5. Schedule 5 - Security Documentation: Details of any assets offered as security, including valuations if applicable

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

England and Wales

Publisher

Ƶ

Document Type

Service Letter

Cost

Free to use
Relevant legal definitions
























Clauses




















Industries

Companies Act 2006: Primary legislation governing company operations, including requirements for company documentation, directors' duties and responsibilities, and company borrowing powers

Financial Services and Markets Act 2000 (FSMA): Regulates financial services activities, including regulated activities, financial promotion restrictions, and licensing requirements

Consumer Credit Act 1974: While primarily for consumer lending, may be relevant if personal guarantees are involved in the company loan arrangement

Financial Services Act 2012: Updates to financial conduct regulations and regulatory framework for financial services in the UK

Money Laundering Regulations 2017: Sets out due diligence requirements and identity verification obligations for financial transactions

Small Business, Enterprise and Employment Act 2015: Relevant legislation if the borrowing company qualifies as a small business

Law of Property Act 1925: Crucial legislation if any security over property is involved in the loan arrangement

Financial Collateral Arrangements (No.2) Regulations 2003: Regulations governing security arrangements in financial transactions

Corporate Insolvency and Governance Act 2020: Recent legislation affecting corporate borrowing and insolvency procedures

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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