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Ash
Ash, Solicitor
Category: Law
Satisfied Customers: 10916
Experience:  Solicitor with 5+ years experience
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I want to make a loan to a company called Platinum Rooms

Resolved Question:

I want to make a loan to a company called Platinum Rooms Ltd. The interest and capital is fully guaranteed in writing by a highly profitable company called Platinum Property Partners. They are both within the same group of companies, but I am not sure
if one is a subsidiary of the other or if they are two subsidiaries within a holding company. The slight concern I have is that they are asking me to send my loan capital to the bank account of Platinum Property Partners ltd, rather than Platinum Rooms Ltd.
The loan agreement is with Platinum Rooms and the guarantor is Platinum Property Partners. I am very happy about everything else, but should I be concerned about this bank account situation, please?
Submitted: 1 year ago.
Category: Law
Expert:  Ash replied 1 year ago.
Hello my name is ***** ***** I will help you.
To be clear the partnership is guarantor ?
Customer: replied 1 year ago.
the guarantor is Platinum Property Partners Ltd. That is a limited company, not a partnership. The company to whom I am making the loan is Platinum Rooms Ltd, another company in the same group. Platinum Property Partners guarantee the return of capital plus interest. I was just wondering why the bank account for the loan to be paid to is that of Platinum Property Partners rather than Platinum Rooms and whether that should make me "smell a rat" -although I know these people personally and I would be astonished if there was anything "dodgy" going on. But I just wanted to check whether that seems regular
Expert:  Ash replied 1 year ago.
Yes I agree. I would only pay the sum to the company it is loaned to. No one else, as you say it smells like a rat.
I would not do it. Can I clarify anything for you about this today please?
Alex
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