Bridging Loans, Personal Guarantees & The Real Risks of Commercial Lending

In this episode of Listen Without Prejudice, Charlie Davidson, Senior Associate in the Property team, is joined by Andrew Kavanagh, Partner in the Corporate team, to explore the realities of commercial lending, from bridging finance to personal guarantees, debentures and enforcement risk. While many borrowers are familiar with high street mortgages and regulated lending products, this conversation focuses on what happens when businesses step off the beaten track and enter the world of bespoke commercial finance. The episode also reflects on lessons learned during the pandemic, when asset valuations shifted dramatically and security positions that once looked robust were suddenly exposed. For borrowers, the message is clear: it’s not just about the interest rate. The real risk often lies in the events of default, monitoring obligations, and technical covenants buried in the loan documentation. For lenders, Andrew emphasises the importance of relationship-building. While documentation can cover every conceivable default scenario, long-term value often comes from supporting viable businesses rather than enforcing aggressively at the first sign of difficulty. Whether you are considering a bridging loan, negotiating security terms, or advising on commercial lending, this episode provides a candid look at what really matters when money changes hands. Chapter Markers (00:00) – Introduction: Property meets corporate lending (02:00) – High street lending vs bespoke commercial finance (05:30) – Personal guarantees explained (09:00) – Joint and several liability risks (15:00) – Consumer vs commercial lending protections (18:00) – Events of default and monitoring obligations (20:00) – Enforcement strategy and lender options (24:00) – Key advice for borrowers and lenders Useful Links Connect with Andrew Kavanagh on LinkedIn:   / andrew-kavanagh-82104b24   Reach out to Charlie Davidson on LinkedIn:   / houndofholborn   Visit the Bishop & Sewell Website: https://www.bishopandsewell.co.uk/