Loan Agreement Solicitors

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If you need cash or quick access to financing, this is usually the first idea that comes to mind. When obtaining a loan, a contract, also known as a loan contract, is established to indicate the terms of the loan. A loan agreement is a legally binding contract, so it is advisable, before signing the loan agreement, to review the contract in order to understand the obligations that are your responsibility when acquiring the loan. Whether you are a borrower or a lender, our sales team will advise you on the risks and benefits of the proposed agreement and the terms of the loan and will leave no room for unpleasant surprises in the event of a default or dispute related to the agreement. Whenever someone lends money to another person, the main concern should be to get the money back. It is therefore in everyone`s interest to document the terms of a loan in a formal agreement. That way, everyone knows exactly where they are with respect to credit. We would always recommend entering into a loan agreement setting the amount of the loan and its payment, so that there can be no confusion about the terms agreed. Other common conditions include the interest rate payable (if any), the duration of the loan, all the loan commitments made by the borrower, and the default events that define the circumstances under which the lender may contract the lender.

Repayment and advance conditions – This covers how and when the loan should be repaid and whether the borrower can pay earlier. For many small and medium-sized businesses that wish to borrow money, the lender can apply for a personal guarantee. This allows the bank to ask you for repayment of the loan as an alternative to legal action against the company if it is insolvent. If you agree, you can put your home at risk if the business is down and it is unable to pay off its debts. It is important to check from the outset whether a personal guarantee is required and, if so, to think carefully about the willingness to accept. Credit contracts can be complex and full of financial jargon, so it`s important to understand what you`re signing up for.

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Updated: April 10, 2021 — 4:24 pm

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