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This is an agreement for use between a business seller and a business buyer. It is used when the seller is allowing a buyer to pay over time – so the seller is giving credit when someone is buying the seller’s products and / or services.
For example, the seller is offering an expensive product for sale and the buyer can either pay for it in one lump sum or pay over 6 monthly instalments.
There is a choice of 2 agreements:
Agreement-1.
This agreement also means that you will be asking the buyer to pay extra (interest or charges).
Agreement-2.
This agreement also means that you are NOT asking the buyer to pay extra (interest or charges).
These agreements are not suitable for use unless you are a business which is extending credit to their own customers who are also businesses. If you are allowing a customer regulated in accordance with consumer credit legislation do not use this agreement.
AGREEMENT 1– CHARGING INTEREST
DO NOT USE THIS DOCUMENT - If you do not want to charge interest on the loan
AGREEMENT 2 – NO INTEREST CHARGED
DO NOT USE THIS DOCUMENT
E&W
File Type: Word File
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WHEN TO USE THIS DOCUMENT This is a Loan agreement to be used when the person lending the money (creditor) is a family member of the person who is borrowing the money (debtor). It is: Allows for monthly repayment over an agreed period of time. Allows you to charge Interest on th..
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