Independent Legal Advice for Guarantors of Limited Companies
Clear guidance for guarantors
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Our legal advice service
Providing a personal guarantee for a limited company is a significant responsibility. At Samra Legal Ltd, we offer clear and comprehensive independent legal advice for guarantors to ensure you fully understand the implications before signing.
Our expert solicitors in Warwick are here to guide you through this critical process with professionalism and care.
What Is independent legal advice for guarantors?
When acting as a guarantor for a limited company, you are legally agreeing to cover the company’s liabilities if it cannot meet its financial obligations. Banks, lenders, or other institutions often require guarantors to obtain independent legal advice to confirm:
• You understand the terms and risks associated with the guarantee.
• Your decision is made freely and without undue influence.
• You are aware of the potential personal financial consequences.
Our role is to ensure you are fully informed, and your interests are protected throughout the process.
Why do guarantors need independent legal advice?
Independent legal advice is a legal requirement in many cases involving personal guarantees. It ensures:
1. Clarity: You fully understand your obligations and the risks involved.
2. Protection: Your decision is informed and made independently.
3. Compliance: Lenders require a solicitor’s certificate to confirm you’ve received independent advice.
By providing impartial advice, we safeguard your financial interests and ensure compliance with the lender’s requirements.
Our process for independent legal advice
Initial Consultation
We’ll arrange an initial consultation to understand your circumstances and review the personal guarantee document. You’ll provide:
•The draft guarantee document from the lender.
•Details of the loan or agreement being guaranteed.
Explanation of Terms
Our solicitor will explain the terms of the personal guarantee in clear, straightforward language, ensuring you understand:
•The full scope of your obligations.
•The risks involved, including potential liabilities.
•Your rights and available options.
Discussion of Implications
We’ll discuss the financial and legal implications of signing the guarantee, helping you make an informed decision.
This step ensures you are fully aware of the potential outcomes before proceeding.
Signing and Certification
Once you’re satisfied and fully informed, we’ll witness your signature and issue the required Certificate of Independent Legal Advice, confirming you’ve received professional guidance.
Important Note:
The advice provided is specific to the personal guarantee in question. Each agreement is unique, and circumstances may vary depending on the lender’s terms or your personal situation. Our team will provide tailored advice and ensure you fully understand the implications before proceeding.
Take the stress out of being a guarantor with Samra Legal!
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Frequently asked questions
Lenders require independent legal advice to confirm you fully understand the terms and potential liabilities of the guarantee.
As a guarantor, you would be personally liable for the company’s debts outlined in the guarantee agreement.
Typically, the process can be completed in a single meeting, provided all documents are ready for review.
Generally, personal guarantees are legally binding once signed. However, specific terms may allow for release under certain conditions, which we will explain during our consultation.
You’ll need the draft guarantee document, the loan agreement, and identification for verification purposes.
