Loan Agreement
Protecting your private loans.
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You're an individual or a corporation and you've agreed to loan money to a individual or a corporation - but you have not set out the terms of payment for that loan. We can with help that.
Outlining a proper written payment plan along with terms and conditions can be pivotal to protecting your loan and ensuring you get paid back.
Our loan agreement package does exactly that. We know how hard you've worked for your money, so we want to ensure that any money that you loan out is protected - on all spheres. We got your back, now let's get drafting.
6 Elements of a Loan Agreement.
Why you should protect your next private loan
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Who we help.
A handful of some of the industries we’ve worked with
Retail
Fashion & Design
Food & Beverage
E-commerce
Not-for-Profit & Charities
Real Estate
Ambitious business but small budget?
Discover our resources section. You’ll find videos, guides and contracts to guide you through the legal of your business.
Learn and copy the techniques we use for our clients and use them to protect your business.
Frequently Asked Questions.
Find As to your Qs
A loan agreement is a contract that is concluded between a borrower and a lender. The contract stipulates terms and conditions to which the borrower must abide to in order to receive a loan. The contract will also specify the principal loan amount, the interest rate, amortization period, term, fees, payment terms & the events of defaults.
The borrower is the individual or the corporation who is received the loan (money, property or service) from the Lender.
The lender is the individual or corporation that is giving the loan (money, property or service) to the borrower.
The interest rate on the loan is the amount that is being charged as a percentage on the principal loan amount from the lender to the borrower for the use of their assets.
The interest on the loan can be fixed or varied. If it is fixed, the the borrower will pay as an example 3% per year on the loan. If it is varied, the interest can go up per month until the loan is fully paid off.
Typically, the loan will be paid with one of the following options:
- Periodic Amounts: The Borrower will make certain payments to the lender in periodic set intervals.
- Lump Sum: The Borrower will make one lump sum payment to the lender at the end of the term.
- Interest Only: The Borrower is only paying back the interest. No portion of the payment is paying back the principal loan amount.
- Interest and Principal: The Borrower makes period payments to the Lender that pay off both the principal and the associated interest.
Yes. If the lender does not take any security on the loan, should the borrower default on the loan, the lender will have to take the borrower to court to obtain payment. The judgement will then be enforced against the assets of the Borrower.
However, if the lender does take security on the loan, they will be able to seize and sell the security should the borrower default on his loan.
Not necessarily. If the security is less than the principal amount of the loan, then once the lender sells the security, he can then sue the borrower for the remaining portion of the loan. If the security is more than the principal amount of the loan, any surplus from the sale of the security will be returned to the borrower.
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