Deeds of Priority and Waivers
Agreeing lending with alternative lenders
We are committed to serving our customers’ needs and recognise that small and medium sized enterprises (SMEs) should have access to different sources of finance. We will provide prompt support for business customers where they wish to take finance from more than one provider and security is involved and support the arrangements detailed in the British Bankers Association factsheet ‘What you need to know as a small or medium sized business and what the major banks are committed’.
The following information is for Finance Providers who are proposing to provide lending facilities to SMEs who have borrowing with us and where a deed of priority or waiver is required.
Customers who wish to discuss existing or new borrowing with us or an alternate finance provider should contact their Relationship Manager or team in the first instance or contact us on 0345 072 5555.
We are committed to making sure the process of responding to a request for a deed of priority or waiver is handled as quickly and efficiently as possible, and that customers are given a response as quickly as possible as regards the agreement to proceed with the request or otherwise.
We are committed to lending responsibly and any proposed changes to the structure of the borrowing of the business is subject to usual credit and affordability checks. We will always therefore, discuss the proposed arrangements with our customer.
On receipt of a standard request for a deed of priority or waiver (based on pre-agreed or the standard templates), and provided all relevant information has been provided to enable us to make the credit assessment, we commit to undertake the following actions:
i) Notify the customer of our decision within 7 working days.
The decision will either:
a. Confirm granting of the request or
b. If unable to comply with the request will clearly state the reasons why we are not able to comply and allow the customer to follow usual lending appeals procedures if not satisfied or
c. Be clear if more time is required to complete the review and why that is.
(Note: More time is likely to be required for the reasons stated below. In such circumstances, we will advise the customer and alternate lender that the transaction will take longer to process but will seek to notify the decision within 20 working days. In the event that the alternate lender is not willing to agree to use the standard documentation, we will also advise the customer and engage in negotiations with alternate lenders to agree a bespoke document).
ii) Subsequent to the decision being made, where the decision confirms granting of the request, then post the communication of that decision, final documentation will be issued for all parties to sign.
The standard templates provided are for use for Business Banking customers and relate to charges over commercial assets only. If the mortgage is a residential mortgage, or if the mortgagee’s address as shown at Land Registry is Barnett Way, please contact the appropriate office.
The standard templates aim to cover the majority of lending scenarios. Please contact us at lloydsbankDoPenquiries@lloydsbanking.com if you have any queries relating to these.
We will be happy to discuss any additional scenarios. If you have any queries regarding specific customer cases or have an alternative wording that you would like to use, our relationship teams will be pleased to help in the first instance (subject to customer consent). We will aim to process all requests as quickly as possible although non standard wording may require further discussion and therefore may take longer than 7 days to provide a decision.
What are the main reasons why a Deed of Priority or Waiver arrangement may take longer to put in place? expandable section
There may be practical reasons, for example:
- Where we have not been able to contact the customer or where the customer needs time to prepare information or expresses concern;
- The documentation proposed is not standard and/ or incomplete;
- The business structure is complex, for example, its lending has several facilities that need to be taken into account or if a revaluation is required;
- The paperwork needed from the alternate lender is incomplete;
- More complex facilities, asset structures or company structures where bespoke documentation will be required and where other lenders are unable to agree standard documentation with us.
In the event that a request is not granted, the decision may be because of one or more or the following (but not exclusive) reasons:
- Insufficient security remains in respect of the facilities provided by LBG;
- The proposed transaction would break an existing covenant and have significant implications for the customer.
Reasons for decline will be fully explained to our customer and if they wish to challenge this, they can appeal through our standard lending appeals procedure.
The following forms are available to download:
- Customer Information and Consent Form (PDF, 77.3KB) for Lloyds Bank customers
Three Lloyds Bank Deed of Priority templates for regulating priorities between:
- Two debentures Opens in new window (pdf, 189.3 KB)
- Two mortgages (limited) Opens in new window (pdf, 181.0 KB)
- Two debentures (with factoring/invoice discounting) Opens in new window (pdf, 192.3 KB)
ANY PROPERTY GIVEN AS SECURITY, WHICH MAY INCLUDE YOUR HOME, MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE OR OTHER DEBTS SECURED ON IT.
Overdrafts are repayable on demand.
All lending is subject to a satisfactory credit assessment and we will need your permission to carry out a credit check on you and your business.
You should not apply for an amount that you cannot comfortably afford to repay now and in the future to avoid the possibility of legal action.
All lending is subject to status. Security may be required.
Important Legal Information
Calls may be monitored or recorded in case we need to check we have carried out your instructions correctly and to help improve our quality of service.
The products and services outlined on this site may be offered by legal entities from across Lloyds Banking Group, including Lloyds Bank plc and Lloyds Bank Corporate Markets plc. Lloyds Bank plc and Lloyds Bank Corporate Markets plc are separate legal entities within the Lloyds Banking Group.
Lloyds Bank is a trading name of Lloyds Bank plc, Bank of Scotland plc and Lloyds Bank Corporate Markets plc. Lloyds Bank plc. Registered Office: 25 Gresham Street, London EC2V 7HN. Registered in England and Wales no.2065. Bank of Scotland plc. Registered Office: The Mound, Edinburgh EH1 1YZ. Registered in Scotland no. SC327000. Lloyds Bank Corporate Markets plc. Registered office 25 Gresham Street, London EC2V 7HN. Registered in England and Wales no. 10399850. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority under registration number 119278, 169628 and 763256 respectively.
We adhere to The Standards of Lending Practice which are monitored and enforced by the LSB: www.lendingstandardsboard.org.uk.
Eligible deposits with us are protected by the Financial Services Compensation Scheme (FSCS). We are covered by the Financial Ombudsman Service (FOS). Please note that due to FSCS and FOS eligibility criteria not all business customers will be covered.