Family loan agreements due to covid-19
If you’ve been approached by family, friends or business associates in financial difficulties due to the covid-19 pandemic we can help.
If you were able to and want to help relatives or friends in financial difficulties should you insist on a formal loan agreement?
As lawyers we would advise yes. A sensible loan agreement provides clarity for both parties and may help to avoid legal disputes at a later date.
If you need a loan agreement drafted because of coronavirus, we offer a rapid and cost effective service. Of course you can find template loan agreements online, possibly even free. However, in these uncertain times, a template loan agreement may not cover important aspects for the unforeseen and unpredictable current pandemic situation.
For example, should the loan be on demand, for a fixed term or have some other mechanism about how and when you as lender can insist legally on repayment? Flexibility in the drafting of a loan agreement might well be a better option and provide some reassurance to the person borrowing.
If you need advice on an urgent loan to family or friends or perhaps a business loan which you may make to your business or directly to a business owned by a family member or friend, we can help. Please do get in contact.