Arranging Deeds of Priority and Letters of Waiver
We understand that even if you've secured business borrowing through HSBC, you may also want to secure additional debt or equity finance through another lender. If so, your new lender may require security over your business assets (in the form a debenture) or over specific assets, such as your debtor books.
If this applies to you, we can help you manage this part of the process and liaise with your other lender. Simply get in touch to discuss your situation with one of our advisers and arrange a Deed of Priority or Letter of Waiver.
Are you an HSBC business borrowing customer?
Deeds of Priority and Letters of Waiver explained
A Deed of Priority is a legal agreement which sets out the agreed terms between different lenders. Where a lender's security competes with that of another lender over the same assets, a Deed of Priority sets out how the monies from the realisation of such assets will be dealt with.
A Letter of Waiver is issued by a secured lender in favour of another lender, waiving a particular asset from its security. The waiver can usually be withdrawn upon written notice.
The process explained
- You contact us to discuss your requirements
- You submit the relevant forms and information
- Within 7 days, we'll contact you to either:
- confirm we have agreed to your request
- tell you that we are unable to agree to your request, giving you the reasons for our decision and advising you of your option to appeal the decision
- tell you that more time or information is required to make a decision and the reasons why (in which case, we'll seek to notify you of our decision within 20 working days)
The relevant documents explained
If you have a straightforward request, you can use one of our standard Deed of Priority or Letter of Waiver documents below. If you need to discuss a more bespoke arrangement, please contact us on 03457 60 60 60 1 or email external.relations@hsbc.com.
Are you a lender?
Your business borrowing customer may wish to use one of our standard Deed of Priority or Letter of Waiver documents below. Alternatively, if you're not willing to use our standard documentation and no bespoke agreements are in place, we will have a discussion with you to agree a bespoke document that is acceptable to both parties. Please contact us on 03457 60 60 60 1 or email external.relations@hsbc.com.
