When you are in business you will find that occasionally you will have to take out a loan. This may also happen when you are getting ready to purchase a business. The Loan Agreement that we offer for sale will be suitable for use in either situation. We have had a solicitor draft the Loan Agreement so that it can be used in the UK, Scotland and Wales. For under £10 you can buy this easy to use Loan Agreement. This document can be used by an individual or a company when making a loan.
You will find that in this template there is a place to write the amount of interest that will be charged for the loan. However, since this document is customisable it can be used without the provision of interest being charged if the situation warrants it. Because we wanted to make this template easy to use you will have the flexibility to set the terms of repayment. If you should decide you want to have a statement that the loan is payable on demand as an amendment you will be able to do so. Making business as easy as possible while being fully protected is what our documents are here for.
The interest rate will mirror the lending practices of banking. The rate would be set using the base bank rate plus a certain percentage over that. This allows the lender to remain competitive with the banks, especially when the economy is not healthy. If you are in business during hard economic times using the Loan Agreement may be the only way to get a loan for your business. You wouldn’t want to pay more interest than necessary in this situation. By using our Loan Agreement your terms and conditions will be set forth in easy to understand legal terms.
In regards to a particular loan the template will be in place to write down the basis of the contract between the lender and borrower. This way the rights of each party will be spelled out in the Loan Agreement. A Loan Agreement is a document between at least two entities. If you have bought a personal home or car using another’s money then you have used a Loan Agreement before. This Loan Agreement is no different just because you are using it for business purposes.
If the loan will not have a fixed interest rate the terms of the variable rate will need to be placed in the Loan Agreement template. This is necessary so that the borrower can understand how the monthly payment could rise or fall depending on the Bank of England base rates.
You will also need to place a statement in the Loan Agreement talking about the repayment of the loan. If you should be able to pay off the loan early you don’t want to have any prepayment penalties. This is part of the customisable features in the Loan Agreement that we have for sale. We strive to make the purchase and use of all of our documents easy and safe to use. If you ever have any questions regarding the document after you have it filled out you can ask a professional for advice.