Deed of inter-group guarantee of loan

This cross guarantee benefits a lender or other counter party dealing with one or more members of a group of companies (or associated individuals). Each member of the group guarantees one or more loans or contractual obligations made by one or more of the others.
Suitable for use in: England & Wales and Scotland
£30.00 inc VAT ( £25 ex VAT )
  • Solicitor approved
  • Plain English makes editing easy
  • Guidance notes included
  • Money back guarantee
Why from us
Ask a question

About this document

A cross guarantee allows one or more companies within a group to guarantee the obligations of one or more of the other members as set out in a named, identifiable contract.

Such an arrangement is common where a subsidiary wishes to borrow from a lender but doesn’t meet the criteria for the loan (such as having sufficient capital reserves or free cash flow, or being within a particular jurisdiction). The parent company and the other subsidiaries, that together meet the criteria, step in to guarantee the repayment of the debt.

This agreement gives strong legal protection for the party that requires the guarantee.

It could be put in place at the same time as the original contract or later to supplement an existing one when circumstances change (such as a change in ownership).

Such an agreement is most often used to guarantee the repayment of a debt, but a cross guarantee could be used to cover any contractual obligation.

The document also provides options for variation of the terms of the main agreement.

It can be used in conjunction with any other contract, including in situations where the group companies are outside the UK.

This document may be signed as a deed (without consideration), or as a simple agreement under hand, as the notes explain.

The law in this document

There is no statute law relating to guarantees that limits the arrangements you can make. This document is based on common contract law.

Alternative documents

If your situation is one where the guarantor is not a member of the same group of companies, or where you want specifically to guarantee performance rather than repayment of a debt, look at our cross guarantee agreement.

Net Lawman also offers other document templates related to guarantees and indemnities.

Application and main features

  • The guarantees
  • Continuing liability
  • Additional lender safeguards
  • Covers payments received from foreign based subsidiaries
  • Lender’s right to assign
  • Other necessary legal provisions

This document was written by a solicitor for Net Lawman. It complies with current English law.

What Our Clients Say
  • "I have used you in the past and am always impressed!"

    Diane Bantten (Acquit Debt Recovery)
  • "I needed an Agreement and Google, as always, was where I headed. I found the Net Lawman site and initially I thought I needed a relationship type Agreement but the Lodger one was absolutely perfect.

    I didn't think it would be so easy so would recommend your website to anybody who was looking for an Agreement to suit their needs."

    Wendy Auger
  • "I was recommended to you some time ago - many thanks for an excellent document. I have you in my favourites Easy to navigate website - clearly displayed and simple to understand. Very easy to use and edit document in clear English. It has enabled me to present a professional and relevant document to my customers with ease. I will recommend Net Lawman due to easy to use website, documents in clear English and easy to edit, very reasonable and prompt."

    Martha Walker