Business Loan or Credit Agreement – here’s the details
WHY SHOULD I USE THIS BUSINESS LOAN OR CREDIT AGREEMENT?
When you are offering a loan or credit to a limited company, you need to be repaid. This means keeping a written record of what’s been agreed so everyone understands their obligations. This agreement takes you through the practical issues you need to think about before making the loan. You can then confidently record your agreement and rely on it when needed.
WHAT’S IN THIS BUSINESS LOAN OR CREDIT AGREEMENT?
This agreement includes the information you need to include in an agreement like this. It helps you record the amount of the loan and when and how it needs to be repaid. You can also decide on what interest you want to charge.
You can also explain what happens if payments are not made (defaults). You can also detail when you would expect the loan balance to be paid early. For example, you can ask for full repayment if the business is closing.
HOW TO USE THIS BUSINESS LOAN OR CREDIT AGREEMENT?
Download the MS Word document. We make sure that our qualified lawyers have written it plain English, so it is easy to understand.
The document contains guidance and suggestions. You also get a video to guide you through those suggestions and through each section of the document. This way you have an agreement that you customise to meet your needs.
Use it for loans or credit agreement with companies and when you don’t need to be licenced or regulated with the Financial Conduct Authority.
NEED OTHER DOCUMENTS?
Lending money to a family member? See our Family Loan Agreement