Practice Areas / Banking & Finance
Banking & Finance Lawyers
Loan agreements, securities, advice for guarantors and disputes with lenders, for clients across Melbourne, Frankston and the Mornington Peninsula, with advice available in Polish.
Loans, security and guarantees
Money lent between businesses, investors and families is often documented in a hurry, if at all. When repayments stop, everyone involved finds out how much depends on what the documents say and whether the security was registered.
We act for borrowers, private lenders and guarantors: preparing and reviewing loan and security documents, giving the independent legal advice lenders ask for, and acting when a loan goes wrong. Radek Dajer handles your matter himself and can take Polish-speaking clients through their documents in Polish.
How we help with banking and finance
Loan agreements
Loan documents for private lenders and borrowers covering interest, repayments, default and enforcement, so each party knows where they stand.
Solicitor's certificates
Independent legal advice for guarantors and borrowers before they sign, with the certificate the lender requires, in English or Polish.
Securities and the PPSR
Mortgages, general security agreements and registrations on the Personal Property Securities Register, prepared correctly and registered on time.
Disputes with lenders
Default notices, hardship requests, complaints to the Australian Financial Complaints Authority, and court proceedings over loans and security.
Loan agreements and security documents
Whether you are lending or borrowing, a loan is only as secure as its documents. We prepare new documents and review those put to you by the other party.
- Loan agreements: the amount, interest, repayments, events of default and the lender’s rights on default, clearly written and enforceable.
- Consumer or business lending: loans to individuals wholly or mainly for personal, domestic or household purposes, or for residential investment property, are generally regulated by the National Credit Code in the National Consumer Credit Protection Act 2009 (Cth), and a lender who makes them in the course of a business generally needs an Australian credit licence.
- Mortgages and caveats: registered mortgages over Victorian land under the Transfer of Land Act 1958 (Vic), and caveats to protect an interest that is not registered.
- General security agreements: security over business assets, vehicles, equipment and stock, perfected by registration on the Personal Property Securities Register under the Personal Property Securities Act 2009 (Cth).
- Guarantees and indemnities: support from directors, related companies or family members, limited in amount or to a particular security where appropriate.
Guarantees, independent advice and solicitor's certificates
Lenders often require a guarantor, and sometimes a borrower, to get independent legal advice and return a solicitor’s certificate before signing. It protects the lender: a court may refuse to enforce the documents against someone who did not understand them, was pressured or was taken advantage of, and the certificate is evidence that they were explained and signed freely.
- What we explain: what you are liable for, whether that is limited, whether it extends to future loans, and what security you are giving, such as a mortgage over your home.
- Your exposure: if the borrower defaults, the lender can usually pursue a guarantor for the full amount covered, often without suing the borrower first, and enforce any security given.
- Checking the details: confirming the loan amount, interest rate and repayments match what you were told, and any mortgage is over the right property.
- Banks and private lenders: banks that subscribe to the Banking Code of Practice must give a prospective guarantor information about the loan and time to consider it. Private lenders are not bound by the Code.
- Advice in Polish: where a parent or relative more comfortable in Polish is backing a family loan, Radek can advise them in Polish without an interpreter.
Before you sign as guarantor
Most guarantors are family members or directors who never expect to be called on, yet the lender can pursue them personally and sell security such as their home. Under a loan regulated by the National Credit Code, a guarantor can withdraw by written notice before credit is first provided, so get advice before settlement.
Disputes with lenders and borrowers
Financial difficulty does not have to end in court. We help borrowers and guarantors respond to lenders, and private lenders recover what they are owed.
- Default notices: for loans regulated by the National Credit Code, a lender generally cannot enforce until it has given a default notice allowing at least 30 days to fix the default. We check and respond to notices and demands.
- Hardship: a borrower under a regulated loan can ask the lender to vary the repayments because of hardship, such as illness or loss of work. We can prepare the request.
- Australian Financial Complaints Authority: AFCA is a free, independent scheme for complaints by consumers and small businesses against its members, which include banks and holders of an Australian credit licence. While AFCA is handling a complaint, a member generally cannot start or continue debt recovery action about it. Many private lenders to businesses are not members.
- Court proceedings: recovering loans for private lenders, claims against guarantors, possession of mortgaged property, and defences such as unconscionable conduct, misrepresentation and unfair contract terms.
Need loan documents prepared or explained?
Book a consultation to have your documents prepared or explained before you sign, or to discuss a dispute with a lender or borrower. Tell us if a settlement date or deadline is close.
Common questions
Can’t see your question? Call 1800 776 529 or send us a message.
It is a signed statement, usually on the lender’s form, in which a solicitor confirms they explained the loan or security documents to you independently of the lender, and that you appeared to understand them and sign freely. It protects the lender, but the advice behind it is for you: your chance to understand the risk before you commit.
Sometimes. For a loan regulated by the National Credit Code in the National Consumer Credit Protection Act 2009 (Cth), a guarantor can withdraw by written notice before credit is first provided, or later if the loan made differs materially from the one shown to the guarantor. Otherwise you usually remain liable until the loan is repaid or the lender agrees to release you, although a court may set the documents aside in some cases.
It applies where credit is given to an individual wholly or mainly for personal, domestic or household purposes, or for residential investment property, and the lender charges for the credit and lends in the course of a business. Loans to companies are generally not covered. A business purpose declaration helps, but not if the lender knew, or would have known after reasonable inquiries, that the real purpose was personal.
Registration on the Personal Property Securities Register is usually how security over vehicles, equipment, stock and other personal property is perfected. An unregistered interest can lose priority to a later registered one, or be lost if the grantor becomes insolvent. For a company grantor, registering more than 20 business days after the security agreement can also mean the interest vests in the company if it enters administration, restructuring or liquidation within six months.
Yes. Radek Dajer speaks Polish and can explain loan documents and mortgages in Polish, and advise a Polish-speaking guarantor directly. There is no need to rely on a family member to interpret, which can undermine the independence of the advice. See our Polish-language services.
Debt and dispute insights
Thinking about taking someone to court in Victoria? This plain-English guide explains which court to use, how costs work, what alternative dispute resolution involves, and what to expect from civil litigation.
When a debtor fails to pay, knowing the correct legal steps can mean the difference between recovering your money and writing off the debt entirely.