Legal service for foreign clients
Banking, Secured Lending and Debt Restructuring in Thailand
Security registered the wrong way is worth exactly nothing on the day the borrower collapses.
Quick answer
Thai business lending runs on several instruments: mortgages over immovables, pledges of shares and machinery, business security agreements under the Business Security Act B.E. 2558 covering receivables, inventory and whole undertakings, plus suretyship, where the Civil and Commercial Code amendments now protect guarantors far more firmly. We draft and review for lenders and borrowers alike, perfect the registrations, and plan restructurings before matters reach enforcement. Engagements start at THB 35,000.
From THB 35,000 — Fees follow the facility size and the number of security registrations; official fees are billed separately. · Document review takes three to seven working days; completing the security registrations usually takes two to six weeks.
Who this is for
- Business owners negotiating a facility with a bank
- Directors asked to guarantee personally who want the exposure capped
- Private lenders who need security that can actually be enforced
- Businesses in default seeking terms before a claim is filed
- Debt purchasers and assignees verifying the validity of what they take
What you receive
- A facility agreement and security documents that align as one set
- Full registration of business security and mortgage interests
- A priority analysis where several creditors are in play
- A restructuring proposal with a schedule the business can survive
- Guarantor-liability mitigation under the amended provisions
Documents to prepare
- The term sheet and the lender's draft agreement
- Historical financial statements and a cash-flow forecast
- A schedule of proposed collateral with the ownership documents
- Board or shareholder resolutions approving the borrowing
- Existing guarantees and any demand letters received
How it works
5-step process
- 1
Read the default clause before the interest rate
A clause that accelerates the whole loan on a minor event is more dangerous than a slightly higher rate every time.
- 2
Match each asset to its correct perfection method
Receivables and inventory go through business security; land and buildings must be mortgaged at the land office, and the two cannot be swapped.
- 3
Draw the guarantee boundary tightly
State the amount and the period guaranteed rather than open-ended wording covering all future debts, which current law already restricts in part.
- 4
Open talks at the first warning sign
Approaching the lender before a second missed instalment yields materially better terms than waiting until the file moves to its legal department.
- 5
Document the new deal so old arguments close
A sound restructuring records the agreed balance, the status of existing security, and the consequence of a fresh default in one instrument.
FAQ
Frequently asked questions
How does business security differ from a pledge?
A pledge requires handing possession to the creditor, while business security lets the grantor keep using the asset, which suits inventory and machinery needed in daily production.
Is a guarantor always liable to the same extent?
Not necessarily: current law voids terms making an ordinary guarantor liable as a joint debtor and requires the creditor to notify within a set period after the borrower defaults.
Can a bank seize assets immediately on default?
Ordinarily a judgment is needed before execution, except for certain business-security arrangements where the law allows enforcement through a registered security enforcer.
May shares in a subsidiary be pledged?
Yes, by delivering and endorsing the certificates and having the company note the pledge in its register, without which it cannot be raised against third parties.
Can mortgaged property be sold?
It can, but the mortgage follows the asset and the buyer inherits enforcement risk, so in practice redemption happens at completion with the buyer's funds paying the mortgagee simultaneously.
Does restructuring damage the credit record?
A restructuring does appear in credit data, yet it generally weighs less than a filed suit and judgment, which follow the directors into their own future borrowing.
Related services
Debt Collection — Bounced Cheques, Enforcement, Seizure
Compliant collection under Debt-Collection Act, Cheque Act, and full enforcement.
Bankruptcy & Business Rehabilitation
Stop the bleeding, or collect inside a process with a clear order of priority.
Asset Tracing & Judgment Enforcement
Turning a judgment into recovered money, not a piece of paper.
Corporate & M&A Lawyer — Due Diligence, Joint Venture
Mid- to large-cap deals under FBA, BOI, JV — structuring and protection.
Written by: Thai Law & Accounting Services — attorneys and licensed accountants
Reviewed by: Reviewed by a Notarial Services Attorney registered with the Lawyers Council of Thailand.
Last updated: 2026-08
Information as of August 2026. Government fees and processing times change — verify with the relevant agency before acting, or let our team verify for you.