[{"data":1,"prerenderedAt":540},["ShallowReactive",2],{"document-loan-agreement-D417":3},{"document":4,"label":24,"preview":11,"thumb":25,"thumb600":26,"description":27,"descriptionCustom":6,"apiDescription":5,"pages":8,"extension":10,"parents":28,"breadcrumb":32,"related":40,"customDescModule":184,"customdescription":27,"mdFm":185,"mdProseHtml":539},{"description":5,"descriptionCustom":6,"label":7,"pages":8,"size":9,"extension":10,"preview":11,"thumb":12,"svgFrame":13,"seoMetadata":14,"parents":16,"keywords":15},"LOAN AGREEMENT This Loan Agreement (\"Agreement\") is made and effective the [DATE], BETWEEN: [LENDER NAME] (the \"Lender\"), an individual with his main address located at OR a corporation organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [COMPLETE ADDRESS] AND: [YOUR COMPANY NAME] (the \"Borrower\"), a corporation organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [YOUR COMPLETE ADDRESS] Promise to Pay Within [NUMBER] months from today, Borrower promises to pay to Lender the sum of [AMOUNT], and interest and other charges stated below. Responsibility Although this Agreement may be signed below by more than one person, Borrower understands that both parties are individuals responsible for paying back the full amount. Breakdown of Loan Amount of Loan: Other (Describe): Amount Financed: Finance Charge: Total of Payments: Annual Rate: Repayment Borrower will repay the amount of this note in [NUMBER] equal uninterrupted monthly installments of [AMOUNT] each on the [DAY] of each month starting on the [DATE], and ending on [DATE]. Prepayment Borrower has the right to prepay the whole outstanding amount at any time",null,"Loan Agreement","2",513,"doc","https://templates.business-in-a-box.com/imgs/1000px/loan-agreement-D417.png","https://templates.business-in-a-box.com/imgs/250px/417.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#417.xml",{"title":15,"description":6},"loan agreement",[17,20,23],{"label":18,"url":19},"Finance & Accounting","/templates/finance-accounting/",{"label":21,"url":22},"Business Loans","/templates/business-loan/",{"label":21,"url":22},"Loan Agreement Template","https://templates.business-in-a-box.com/imgs/400px/417.png","https://templates.business-in-a-box.com/imgs/600px/417.png","\u003Ch4>Understanding a Loan Agreement\u003C/h4>\n\u003Cp>A Loan Agreement is a legally binding document that outlines the terms and conditions between a lender and a borrower. It serves as a contract that details the amount of the loan, repayment schedule, interest rates, and any collateral involved. The agreement ensures clarity and protects the interests of both parties by setting forth the obligations and expectations regarding the loan.\u003C/p>\n\u003Ch5>What is a Loan Agreement Template?\u003C/h5>\n\u003Cp>A Loan Agreement template provides a structured framework to effectively outline the key elements of a lending arrangement:\u003C/p>\n\u003Cul>\n\u003Cli>\u003Cstrong>Parties Involved\u003C/strong> - Clearly identifies the lender and borrower, along with their legal names, addresses, and contact details.\u003C/li>\n\u003Cli>\u003Cstrong>Loan Amount and Purpose\u003C/strong> - Specifies the principal amount of the loan and the intended purpose for which the loan is granted.\u003C/li>\n\u003Cli>\u003Cstrong>Interest Rate and Fees\u003C/strong> - Details the interest rate applied to the loan, including whether it’s fixed or variable, and any additional fees, such as origination or late fees.\u003C/li>\n\u003Cli>\u003Cstrong>Repayment Schedule and Terms\u003C/strong> - Outlines the repayment schedule, including payment amounts, due dates, and the method of repayment.\u003C/li>\n\u003Cli>\u003Cstrong>Collateral and Security\u003C/strong> - Specifies any collateral provided by the borrower to secure the loan, such as real estate or equipment, and the procedures for handling it.\u003C/li>\n\u003Cli>\u003Cstrong>Covenants and Conditions\u003C/strong> - Details the obligations and conditions the borrower must adhere to, such as maintaining insurance or meeting financial ratios.\u003C/li>\n\u003Cli>\u003Cstrong>Default and Remedies\u003C/strong> - Defines what constitutes default on the loan and the actions the lender can take, such as foreclosure or legal proceedings, to recover the loan.\u003C/li>\n\u003Cli>\u003Cstrong>Prepayment and Penalties\u003C/strong> - States whether the borrower can make early payments on the loan and any penalties that may apply for prepayment.\u003C/li>\n\u003Cli>\u003Cstrong>Governing Law and Jurisdiction\u003C/strong> - Specifies the jurisdiction whose laws will govern the agreement and the location where any legal disputes will be resolved.\u003C/li>\n\u003Cli>\u003Cstrong>Signature and Date\u003C/strong> - The signatures of both parties and the date to validate the document.\u003C/li>\n\u003C/ul>\n\u003Ch5>Supporting Documents for Structuring a Loan Agreement\u003C/h5>\n\u003Cp>To enhance the clarity and comprehensiveness of a Loan Agreement, including related documents is advisable:\u003C/p>\n\u003Cul>\n\u003Cli>\u003Cstrong>\u003Ca href=\"https://www.business-in-a-box.com/template/financial-report-D12767/\">Financial Report\u003C/a>\u003C/strong> - A comprehensive report containing the borrower’s financial information, such as income statements, balance sheets, and cash flow statements, provides the lender with insight into the borrower’s financial health and repayment capability.\u003C/li>\n\u003Cli>\u003Cstrong>\u003Ca href=\"https://www.business-in-a-box.com/template/guarantee-agreement-D5194/\">Loan Guarantee Agreement\u003C/a>\u003C/strong> - A legal document in which a third party, known as the guarantor, agrees to assume the borrower’s debt obligations if the borrower defaults, offering additional security for the lender.\u003C/li>\n\u003Cli>\u003Cstrong>\u003Ca href=\"https://www.business-in-a-box.com/template/notice-of-default-in-payment-D391/\">Notice of Default\u003C/a>\u003C/strong> - A formal notice sent by the lender to the borrower, indicating that the borrower has failed to meet the terms of the loan agreement, such as missing payments, and specifying the required corrective actions or potential consequences.\u003C/li>\n\u003C/ul>\n\u003Ch5>Why Use a Comprehensive Loan Agreement Template?\u003C/h5>\n\u003Cp>Using a structured template for drafting a Loan Agreement offers significant benefits:\u003C/p>\n\u003Cul>\n\u003Cli>\u003Cstrong>Clarity and Transparency\u003C/strong> - Clearly defines the terms of the loan, reducing the likelihood of misunderstandings or disputes.\u003C/li>\n\u003Cli>\u003Cstrong>Legal Protection\u003C/strong> - Offers legal protection to both parties by outlining the rights and obligations of each in clear terms.\u003C/li>\n\u003Cli>\u003Cstrong>Financial Planning\u003C/strong> - Provides a structured repayment plan, helping the borrower to manage their finances effectively.\u003C/li>\n\u003Cli>\u003Cstrong>Risk Mitigation\u003C/strong> - Details the collateral and conditions that protect the lender in case of default, reducing risk.\u003C/li>\n\u003C/ul>\n\u003Cp>Adopting a comprehensive Loan Agreement is crucial for ensuring a smooth lending process. It provides a clear and actionable framework for the loan’s terms, supporting transparency and protecting the interests of both the lender and the borrower.\u003C/p>\n\u003Cp>Updated in May 2024\u003C/p>\n",[29,17,20,23],{"label":30,"url":31},"Templates","/templates/",[33,34,37],{"label":30,"url":31},{"label":35,"url":36},"Legal Agreements","/templates/business-legal-agreements/",{"label":38,"url":39},"Loans & Promissory Notes","/templates/loans-and-promissory-notes/",[41,45,49,53,57,61,65,69,73,77,81,85,88,105,121,136,152,169],{"label":42,"url":43,"thumb":44,"extension":10},"Shareholder Loan Agreement","/template/shareholder-loan-agreement-D13239","https://templates.business-in-a-box.com/imgs/250px/13239.png",{"label":46,"url":47,"thumb":48,"extension":10},"Subordinated Loan Agreement","/template/subordinated-loan-agreement-D12877","https://templates.business-in-a-box.com/imgs/250px/12877.png",{"label":50,"url":51,"thumb":52,"extension":10},"Equipment Loan Agreement","/template/equipment-loan-agreement-D12843","https://templates.business-in-a-box.com/imgs/250px/12843.png",{"label":54,"url":55,"thumb":56,"extension":10},"Loan Agreement Stockholder to Corporation","/template/loan-agreement-stockholder-to-corporation-D418","https://templates.business-in-a-box.com/imgs/250px/418.png",{"label":58,"url":59,"thumb":60,"extension":10},"Credit Agreement","/template/credit-agreement-D416","https://templates.business-in-a-box.com/imgs/250px/416.png",{"label":62,"url":63,"thumb":64,"extension":10},"Subordination Agreement","/template/subordination-agreement-D423","https://templates.business-in-a-box.com/imgs/250px/423.png",{"label":66,"url":67,"thumb":68,"extension":10},"Line Of Credit Agreement","/template/line-of-credit-agreement-D14003","https://templates.business-in-a-box.com/imgs/250px/14003.png",{"label":70,"url":71,"thumb":72,"extension":10},"Revolving Credit Agreement","/template/revolving-credit-agreement-D14051","https://templates.business-in-a-box.com/imgs/250px/14051.png",{"label":74,"url":75,"thumb":76,"extension":10},"Promissory Note","/template/promissory-note-D434","https://templates.business-in-a-box.com/imgs/250px/434.png",{"label":78,"url":79,"thumb":80,"extension":10},"Stock Lending Agreement","/template/stock-lending-agreement-D14067","https://templates.business-in-a-box.com/imgs/250px/14067.png",{"label":82,"url":83,"thumb":84,"extension":10},"Credit Note","/template/credit-note-D13639","https://templates.business-in-a-box.com/imgs/250px/13639.png",{"label":66,"url":86,"thumb":87,"extension":10},"/template/line-of-credit-agreement-D13360","https://templates.business-in-a-box.com/imgs/250px/13360.png",{"description":89,"descriptionCustom":6,"label":90,"pages":8,"size":9,"extension":10,"preview":91,"thumb":92,"svgFrame":93,"seoMetadata":94,"parents":96,"keywords":95,"url":104},"PERSONAL GUARANTEE This Personal Guarantee (the \"Agreement\") is effective [DATE], BETWEEN: [FIRST PARTY NAME] (the \"Guarantor\"), an individual with his main address located at: [YOUR COMPLETE ADDRESS] AND: [YOUR COMPANY NAME] (the \"Second Party\"), a company organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [YOUR COMPLETE ADDRESS] I, [NAME OF GUARANTOR], residing at [COMPLETE ADDRESS], hereby personally and solidarity guarantee all of the obligations of [YOUR COMPANY NAME] and agree to be bound solidarity with [YOUR COMPANY NAME] for the prompt performance of [YOUR COMPANY NAME]'s obligations under that certain [SPECIFY] Agreement dated [DATE] (the \"Agreement\") between [YOUR COMPANY NAME] and [COMPANY NAME], including without limitation the payment of all goods, wares and merchandise as [YOUR COMPANY NAME] may from time to time select and purchase on credit from [COMPANY NAME], and hereby expressly renounce to the benefits of division and discussion. Furthermore, I agree that waive may extend the time for payment of any amounts owing to it by waive and/or may waive any default by waive without it in any way lessening or limiting my liability hereunder. Notwithstanding the foregoing, my guarantee hereunder to pay any and all amounts owing by [YOUR COMPANY NAME] to [COMPANY NAME] shall be limited to the sum of [AMOUNT] OR [%] of such outstanding amount.","Personal Guarantee","https://templates.business-in-a-box.com/imgs/1000px/personal-guarantee-D405.png","https://templates.business-in-a-box.com/imgs/250px/405.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#405.xml",{"title":95,"description":6},"personal guarantee",[97,99,101],{"label":18,"url":98},"finance-accounting",{"label":21,"url":100},"business-loan",{"label":102,"url":103},"Guaranties & Collateral","guaranties-collateral","/template/personal-guarantee-D405",{"description":106,"descriptionCustom":6,"label":107,"pages":108,"size":9,"extension":10,"preview":109,"thumb":110,"svgFrame":111,"seoMetadata":112,"parents":114,"keywords":113,"url":120},"NON-DISCLOSURE AGREEMENT (NDA) This Non-Disclosure Agreement (the \"Agreement\") is made and effective [DATE], BETWEEN: [YOUR COMPANY NAME] (the \"Disclosing Party\"), a corporation organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [YOUR COMPLETE ADDRESS] AND: [RECEIVING PARTY NAME] (the \"Receiving Party\"), an individual with his main address located at OR a corporation organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [COMPLETE ADDRESS] WHEREAS, Receiving Party has been or will be engaged in the performance of work on [DESCRIBE]; and in connection therewith will be given access to certain confidential and proprietary information; and WHEREAS, Receiving Party and Disclosing Party wish to evidence by this Agreement the manner in which said confidential and proprietary material will be treated. NOW, THEREFORE, it is agreed as follows: NON-DISCLOSURE OF CONFIDENTIAL INFORMATION Both Parties understand and agree that each Party may have access to the confidential information of the other party. For the purposes of this Agreement, \"Confidential Information\" means proprietary and confidential information about the Disclosing Party's (or it's suppliers') business or activities. Such information includes all business, financial, technical, and other information marked or designated by such Party as \"confidential\" or \"proprietary.\" Confidential Information also includes information which, by the nature of the circumstances surrounding the disclosure, ought in good faith to be treated as confidential. For the purposes of this Agreement, Confidential Information does not include: Information that is currently in the public domain or that enters the public domain after the signing of this Agreement. Information a Party lawfully receives from a third Party without restriction on disclosure and without breach of a non-disclosure obligation. Information that the Receiving Party knew prior to receiving any Confidential Information from the Disclosing Party. Information that the Receiving Party independently develops without reliance on any Confidential Information from the Disclosing Party. Each Party agrees that it will not disclose to any third Party or use any Confidential Information disclosed to it by the other Party except when expressly permitted in writing by the other Party. Each Party also agrees that it will take all reasonable measures to maintain the confidentiality of all Confidential Information of the other Party in its possession or control. TERM The term of this Agreement is [number] of [years/months] from the date of execution by both Parties. TITLE The Receiving Party agrees that all Confidential Information furnished by the Disclosing Party shall remain the sole property of the Disclosing Party. DISCLAIMER","Non Disclosure Agreement Nda","3","https://templates.business-in-a-box.com/imgs/1000px/non-disclosure-agreement-nda-D12692.png","https://templates.business-in-a-box.com/imgs/250px/12692.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#12692.xml",{"title":113,"description":6},"non disclosure agreement nda",[115,117],{"label":35,"url":116},"business-legal-agreements",{"label":118,"url":119},"Confidentiality Agreements","confidentiality-agreement","/template/non-disclosure-agreement-nda-D12692",{"description":122,"descriptionCustom":6,"label":123,"pages":124,"size":125,"extension":10,"preview":126,"thumb":127,"svgFrame":128,"seoMetadata":129,"parents":130,"keywords":134,"url":135},"INDEPENDENT CONTRACTOR AGREEMENT This Independent Contractor Agreement (\"Agreement\") is made and effective [Date], BETWEEN: [INDEPENDENT CONTRACTOR NAME] (the \"Independent Contractor\"), a company organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [COMPLETE ADDRESS] AND: [YOUR COMPANY NAME] (the \"Company\"), a company organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [YOUR COMPLETE ADDRESS] RECITALS Independent Contractor is engaged in providing [Describe] business services, its Employer Tax I.D. Number is [Insert], and its Business License Number is [insert]. Independent Contractor has complied with all Federal, State, and local laws regarding business permits, sales permits, licenses, reporting requirements, tax withholding requirements, and other legal requirements of any kind that may be required to carry out said business and the Scope of Work which is to be performed as an Independent Contractor pursuant to this Agreement. Independent Contractor is or remains open to conducting similar tasks or activities for clients other than the Company and holds themselves out to the public to be a separate business entity. Company desires to engage and contract for the services of the Independent Contractor to perform certain tasks as set forth below. Independent Contractor desires to enter into this Agreement and perform as an independent contractor for the company and is willing to do so on the terms and conditions set forth below. NOW, THEREFORE, in consideration of the above recitals and the mutual promises and conditions contained in this Agreement, the Parties agree as follows: TERMS This Agreement shall be effective commencing [Date], and shall continue until terminated at the completion of the Scope of Work which shall occur no later than [Date] or by either party as otherwise provided herein. STATUS OF INDEPENDENT CONTRACTOR This Agreement does not constitute a hiring by either party. It is the parties intentions that Independent Contractor shall have an independent contractor status and not be an employee for any purposes, including, but not limited to, [laws]. Independent Contractor shall retain sole and absolute discretion in the manner and means of carrying out their activities and responsibilities under this Agreement. This Agreement shall not be considered or construed to be a partnership or joint venture, and the Company shall not be liable for any obligations incurred by Independent Contractor unless specifically authorized in writing. Independent Contractor shall not act as an agent of the Company, ostensibly or otherwise, nor bind the Company in any manner, unless specifically authorized to do so in writing. TASKS, DUTIES, AND SCOPE OF WORK Independent Contractor agrees to devote as much time, attention, and energy as necessary to complete or achieve the following: [Describe]. The above to be referred to in this Agreement as the \"Scope of Work\". It is expected that the Scope of Work will completed by [Date]. Independent Contractor shall additionally perform any and all tasks and duties associated with the Scope of Work set forth above, including but not limited to, work being performed already or related change orders. Independent Contractor shall not be entitled to engage in any activities which are not expressly set forth by this Agreement. The books and records related to the Scope of Work set forth in this Agreement shall be maintained by the Independent Contractor at the Independent Contractor's principal place of business and open to inspection by Company during regular working hours. Documents to which Company will be entitled to inspect include, but are not limited to, any and all contract documents, change orders/purchase orders and work authorized by Independent Contractor or Company on existing or potential projects related to this Agreement. Independent Contractor shall be responsible to the management and directors of Company, but Independent Contractor will not be required to follow or establish a regular or daily work schedule. Supply all necessary equipment, materials and supplies. Independent Contractor will not rely on the equipment or offices of Company for completion of tasks and duties set forth pursuant to this Agreement. Any advice given Independent Contractors regarding the scope of work shall be considered a suggestion only, not an instruction. Company retains the right to inspect, stop, or alter the work of Independent Contractor to assure its conformity with this Agreement. ASSURANCE OF SERVICES Independent Contractor will assure that the following individuals (the \"Key Employees\") will be available to perform, and will perform, the Services hereunder until they are completed (identify by title and name as applicable): [Name of Key Employee, Title] [Name of Key Employee, Title] The Key Employees may be changed only with the prior written approval of the Company, which approval shall not be unreasonably withheld. COMPENSATION Independent Contractor shall be entitled to compensation for performing those tasks and duties related to the Scope of Work as follows: [Describe] Such compensation shall become due and payable to Independent Contractor in the following time, place, and manner: [Describe] NOTICE CONCERNING WITHHOLDING OF TAXES Independent Contractor recognizes and understands that it will receive a [specify tax] statement and related tax statements, and will be required to file corporate and/or individual tax returns and to pay taxes in accordance with all provisions of applicable Federal and State law. Independent Contractor hereby promises and agrees to indemnify the Company for any damages or expenses, including attorney's fees, and legal expenses, incurred by the Company as a result of independent contractor's failure to make such required payments. AGREEMENT TO WAIVE RIGHTS TO BENEFITS Independent Contractor hereby waives and foregoes the right to receive any benefits given by Company to its regular employees, including, but not limited to, health benefits, vacation and sick leave benefits, profit sharing plans, etc. This waiver is applicable to all non-salary benefits which might otherwise be found to accrue to the Independent Contractor by virtue of their services to Company, and is effective for the entire duration of Independent Contractor's agreement with Company. This waiver is effective independently of Independent Contractor's employment status as adjudged for taxation purposes or for any other purpose. Neither this Agreement, nor any duties or obligations under this Agreement may be assigned by either party without the consent of the other. TERMINATION This Agreement may be terminated prior to the completion or achievement of the Scope of Work by either party giving [number] days written notice. Such termination shall not prejudice any other remedy to which the terminating party may be entitled, either by law, in equity, or under this Agreement. NON-DISCLOSURE OF TRADE SECRETS, CUSTOMER LISTS AND OTHER PROPRIETARY INFORMATION Independent Contractor agrees not to disclose or communicate, in any manner, either during or after Independent Contractor's agreement with Company, information about Company, its operations, clientele, or any other information, that relate to the business of Company including, but not limited to, the names of its customers, its marketing strategies, operations, or any other information of any kind which would be deemed confidential, a trade secret, a customer list, or other form of proprietary information of Company. Independent Contractor acknowledges that the above information is material and confidential and that it affects the profitability of Company. ","Independent Contractor Agreement","6",62,"https://templates.business-in-a-box.com/imgs/1000px/independent-contractor-agreement-D160.png","https://templates.business-in-a-box.com/imgs/250px/160.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#160.xml",{"title":6,"description":6},[131],{"label":132,"url":133},"Consultant & Contractors","consulting-contractor-business","independent contractor agreement","/template/independent-contractor-agreement-D160",{"description":137,"descriptionCustom":6,"label":138,"pages":139,"size":140,"extension":10,"preview":141,"thumb":142,"svgFrame":143,"seoMetadata":144,"parents":145,"keywords":150,"url":151},"Invoice Company: Complete Address: ______________________________________________________ Phone:_________________ Fax: ________________ Email: _____________________ INVOICE #: _____________ DATE: ________________ Bill to: Address: _______________________________________ City: __________________________________________ State/Province: ___________ Zip/postal code__________ Country: ________________ Phone: _________________ Fax: __________________ Email: _________________________________________ Ship To:","Commercial Sales Invoice","1",42,"https://templates.business-in-a-box.com/imgs/1000px/sales-invoice-D383.png","https://templates.business-in-a-box.com/imgs/250px/383.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#383.xml",{"title":6,"description":6},[146,147],{"label":18,"url":98},{"label":148,"url":149},"Invoices & Receipts","invoice-receipt","sales invoice","/template/sales-invoice-D383",{"description":153,"descriptionCustom":6,"label":154,"pages":139,"size":155,"extension":10,"preview":156,"thumb":157,"svgFrame":158,"seoMetadata":159,"parents":160,"keywords":167,"url":168},"COMPANY NAME:_______________________ Address: _______________________________________ City: ______________________________ State/Province: ___________ Zip/postal code__________ Country: ________________ Phone: _________________ Fax: __________________ Email: _________________________________________ Purchase Order The following number must appear on all related correspondence, shipping papers, and invoices: P.O. NUMBER: Contact: Address: _______________________________________ City: ______________________________ State/Province: ___________ Zip/postal code___________ Country: ________________ Phone: _________________ Fax: __________________ Email: _________________________________________ Ship To:","Purchase Order",49,"https://templates.business-in-a-box.com/imgs/1000px/purchase-order-D1411.png","https://templates.business-in-a-box.com/imgs/250px/1411.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#1411.xml",{"title":6,"description":6},[161,164],{"label":162,"url":163},"Sales & Marketing","sales-marketing",{"label":165,"url":166},"Bids & Quotes","bids-quotes","purchase order","/template/purchase-order-D1411",{"description":170,"descriptionCustom":6,"label":171,"pages":172,"size":9,"extension":10,"preview":173,"thumb":174,"svgFrame":175,"seoMetadata":176,"parents":178,"keywords":177,"url":183},"PARTNERSHIP AGREEMENT This Partnership Agreement (\"Agreement\") is made and effective this [Date], BETWEEN: [YOUR COMPANY NAME] (the \"First Partner\"), a corporation organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [YOUR COMPLETE ADDRESS] AND: [SECOND PARTNER NAME] (the \"Second Partner\"), an individual with his main address located at OR a corporation organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [COMPLETE ADDRESS] RECITALS Partners desire to join together for the pursuit of common business goals. Partners have considered various forms of joint business enterprises for their business activities. Partners desire to enter into a partnership agreement as the most advantageous business form for their mutual purposes. The parties hereto agree to form a limited partnership (the \"Partnership\") under [LAW, CODE OR ACT]. In consideration of the mutual promises contained in this agreement, partners agree as follows: NAME AND DOMICILE The name of the partnership shall be [name]. The principal place of business shall be at [address], [city], [state/province], unless relocated by consent of the partners. Purposes Subject to the limitations set forth in this Agreement, the purposes of the Partnership are to engage in the business of [DESCRIBE ACTIVITIES]; and to conduct other activities as may be necessary or incidental to or desirable in connection with the foregoing. DURATION OF AGREEMENT The term of this agreement shall be for [number] years, commencing on [date], and terminating on [date], unless sooner terminated by mutual consent of the parties or by operation of the provisions of this agreement. CLASSIFICATION AND PERFORMANCE BY PARTNERS Partners shall be classified as active partners, advisory partners, or estate partners. An active partner may voluntarily become an advisory partner, may be required to become one irrespective of age, and shall automatically become one after attaining the age of [age] years, and in each case shall continue as such for [number] years unless the partner sooner withdraws or dies. If an active partner dies, the partner's estate will become an estate partner for [number] years. If an advisory partner dies within [Number] years of having become an advisory partner, the partner will become an estate partner for the balance of the [number]-year period. Only active partners shall have any vote in any partnership matter. At the time of the taking effect of this partnership agreement, all the partners shall be active partners except [name] and [name], who shall be advisory partners. An active partner, after attaining the age of [age] years, or prior to that age if the [executive committee or as the case may be] with the approval of [two-thirds or as the case may be] of all the other active partners determines that the reason for the change in status is bad health, may become an advisory partner at the end of any calendar month on giving [number] calendar months' prior notice in writing of the partner's intention to do so. The notice shall be deemed to be sufficient if sent by registered mail addressed to the partnership at its principal office at [address], [city], [state/province] not less than [number] calendar months prior to the date when the change is to become effective. Any active partner may at any age be required to become an advisory partner at any time if the [executive committee or as the case may be] with the approval of [two-thirds or as the case may be] of the other active partners shall decide that the change is for any reason in the best interests of the partnership, provided notice of the decision shall be given in writing to the partner. The notice shall be signed by the [chairman or as the case may be] of the [executive committee or as the case may be] or, in the event of his or her being unable to sign at the time, by another member of the [executive committee or as the case may be]. The notice shall be served personally on the partner required to change his or her status or mailed by registered mail to the partner's last known address. Change of the partner's status shall become effective as of the date specified in the notice. Every active partner shall automatically and without further act become an advisory partner at the end of the fiscal year in which the partner's birthday occurs. In the event that an active partner becomes an advisory partner or dies, the partner or the partner's estate shall be entitled to the following payments at the following times: [describe] Each active partner shall apply all of the partner's experience, training, and ability in discharging the partner's assigned functions in the partnership and in the performance of all work that may be necessary or advantageous to further the business interests of the partnership. CONTRIBUTION Each partner shall contribute [amount] on or before [date] to be used by the partnership to establish its capital position. Any additional contribution required of partners shall only be determined and established in accordance with Article Nineteen. MANAGEMENT OF THE PARTNERSHIP The Partnership shall be managed by [SPECIFY]. Subject to the limitations specifically contained in this Agreement, [PARTY MANAGING THE PARTNERSHIP] shall have the full, exclusive and absolute right, power and authority to manage and control the Partnership and the property, assets and business thereof. [PARTY MANAGING THE PARTNERSHIP] shall have all of the rights, powers and authority conferred by law or under other provisions of this Agreement. Without limiting the generality of the foregoing, such powers include the right on behalf of the Partnership, in [PARTY MANAGING THE PARTNERSHIP]' sole discretion, to: Acquire, purchase, renovate, improve, and own any property or assets necessary or appropriate or in the best interests of the business of the Partnership, and to acquire options for the purchase of any such property; Borrow money, issue evidences of indebtedness in connection therewith, refinance, increase the amount of, modify, amend or change the terms of, or extend the time for the payment of, any indebtedness or obligation of the Partnership, and secure such indebtedness by mortgage, deed of trust, pledge or other lien on Partnership assets; Sue on, defend or compromise any and all claims or liabilities in favor of or against the Partnership and to submit any or all such claims or liabilities to arbitration; File applications, communicate and otherwise deal with any and all governmental agencies having jurisdiction over, or in any way affecting, the Partnership's assets or any part thereof or any other aspect of the Partnership business; Retain services of any kind or nature in connection with the Partnership business, and to pay therefore such remuneration deem reasonable and proper; and Perform any and all other acts deem necessary or appropriate to the Partnership business. TRANSFER OF PARNERSHIP INTERESTS Restrictions on Transfer None of the Partners shall sell, assign, transfer, mortgage, encumber, or otherwise dispose of the whole or part of that Partner's interest in the Partnership, and no purchaser or other transferee shall have any rights in the Partnership as an assignee or otherwise with respect to all or any part of that Partnership interest attempted to be sold, assigned, transferred, mortgaged, encumbered, or otherwise disposed of, unless and to the extent that the remaining Partner(s) have given consent to such sale, assignment, transfer, mortgage, or encumbrance, but only if the transferee forthwith assumes and agrees to be bound by the provisions of this Agreement and to become a Partner for all purposes hereof, in which event, such transferee shall become a substituted partner under this Agreement.","Partnership Agreement","8","https://templates.business-in-a-box.com/imgs/1000px/partnership-agreement-D12551.png","https://templates.business-in-a-box.com/imgs/250px/12551.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#12551.xml",{"title":177,"description":6},"partnership agreement",[179,180],{"label":35,"url":116},{"label":181,"url":182},"Partnership Agreements","partnership-agreement","/template/partnership-agreement-D12551",true,{"seo":186,"reviewer":198,"legal_disclaimer":184,"quick_facts":202,"at_a_glance":205,"personas":209,"variants":234,"glossary":260,"clauses":297,"how_to_fill":348,"common_mistakes":389,"faqs":414,"industries":442,"comparisons":467,"diy_vs_lawyer":480,"jurisdictions":493,"related_template_ids_curated":514,"schema":526,"classification":527},{"meta_title":187,"meta_description":188,"primary_keyword":189,"secondary_keywords":190},"Loan Agreement Template (Free Word)","Free loan agreement template for business and personal lending. Covers loan amount, interest rate, repayment schedule, default, and security. Free Word and PDF download.","loan agreement template",[191,192,193,194,195,196,197],"loan agreement template word","loan agreement template free","business loan agreement template","simple loan agreement template","personal loan agreement template","loan contract template","loan agreement sample",{"name":199,"credential":200,"reviewed_date":201},"Bruno Goulet","CEO, Business in a Box","2026-05-02",{"difficulty":203,"legal_review_recommended":184,"signature_required":184,"notarization_required":204},"advanced",false,{"what_it_is":206,"when_you_need_it":207,"whats_inside":208},"A Loan Agreement is a legally binding contract between a lender and a borrower that documents the terms of a loan — principal amount, interest rate, repayment schedule, security, and remedies for default. This free Word download gives you a structured, attorney-informed starting point you can edit online and export as PDF to execute with any business or individual borrower.\n","Use it any time money changes hands with an expectation of repayment — whether a business is borrowing from a private investor, an owner is lending to their own company, or two individuals are formalizing a personal loan. Without a signed agreement, the terms of a loan exist only in memory, which courts treat as no terms at all.\n","Parties and loan amount, interest rate and calculation method, repayment schedule with amortization, security or collateral, representations and warranties, events of default and remedies, prepayment conditions, governing law, and signature blocks for both parties.\n",[210,214,218,222,226,230],{"title":211,"use_case":212,"icon_asset_id":213},"Small business owners","Borrowing from a private investor or family member to fund operations or expansion","persona-small-business-owner",{"title":215,"use_case":216,"icon_asset_id":217},"Startup founders","Documenting a convertible or fixed-rate bridge loan before the next equity round","persona-startup-founder",{"title":219,"use_case":220,"icon_asset_id":221},"Private lenders and investors","Formalizing terms before transferring funds to a business borrower","persona-investor",{"title":223,"use_case":224,"icon_asset_id":225},"Real estate investors","Structuring a secured loan against a property asset with a clear default remedy","persona-real-estate-investor",{"title":227,"use_case":228,"icon_asset_id":229},"Corporate finance officers","Documenting intercompany loans between parent and subsidiary entities","persona-cfo",{"title":231,"use_case":232,"icon_asset_id":233},"Individuals lending to friends or family","Creating an enforceable record of a personal loan to avoid future disputes","persona-freelancer",[235,238,241,245,249,253,257],{"situation":236,"recommended_template":7,"slug":237},"Simple one-time loan with fixed repayment schedule","loan-agreement-D417",{"situation":239,"recommended_template":74,"slug":240},"Single-page promise to repay without detailed covenants","promissory-note-D434",{"situation":242,"recommended_template":243,"slug":244},"Loan secured by specific business or personal property","Secured Loan Agreement","secured-lumpsum-promissory-note-agreement-D13041",{"situation":246,"recommended_template":247,"slug":248},"Revolving credit line the borrower can draw and repay repeatedly","Line of Credit Agreement","line-of-credit-agreement-D14003",{"situation":250,"recommended_template":251,"slug":252},"Loan between a parent company and a subsidiary","Intercompany Loan Agreement","inter-company-services-agreement-D886",{"situation":254,"recommended_template":255,"slug":256},"Loan that converts to equity on a future financing round","Convertible Note Agreement","convertible-note-agreement-D870",{"situation":258,"recommended_template":259,"slug":237},"Mortgage or deed-of-trust backed by real property","Mortgage Loan Agreement",[261,264,267,270,273,276,279,282,285,288,291,294],{"term":262,"definition":263},"Principal","The original sum of money lent, before interest or fees are added.",{"term":265,"definition":266},"Annual Percentage Rate (APR)","The yearly cost of the loan expressed as a percentage, including interest and any applicable fees.",{"term":268,"definition":269},"Amortization","The process of spreading loan repayments over time so each payment covers both interest accrued and a portion of the principal.",{"term":271,"definition":272},"Collateral","An asset pledged by the borrower that the lender may seize and sell if the borrower defaults on repayment.",{"term":274,"definition":275},"Event of Default","A defined trigger — such as a missed payment, insolvency, or breach of covenant — that allows the lender to accelerate repayment or enforce security.",{"term":277,"definition":278},"Acceleration Clause","A provision that makes the entire outstanding loan balance immediately due and payable upon an event of default.",{"term":280,"definition":281},"Prepayment Penalty","A fee charged to the borrower for repaying all or part of the loan before the scheduled maturity date.",{"term":283,"definition":284},"Security Interest","A legal right granted to the lender over the borrower's collateral, typically registered under UCC (US), PPSA (Canada), or equivalent legislation.",{"term":286,"definition":287},"Guarantor","A third party who agrees to repay the loan if the primary borrower fails to do so.",{"term":289,"definition":290},"Usury","Charging an interest rate that exceeds the legal maximum permitted in the applicable jurisdiction.",{"term":292,"definition":293},"Covenant","A contractual obligation — affirmative (things the borrower must do) or negative (things the borrower must not do) — that governs borrower conduct during the loan term.",{"term":295,"definition":296},"Maturity Date","The date on which the final loan payment is due and all outstanding principal and interest must be fully repaid.",[298,303,308,313,318,323,328,333,338,343],{"name":299,"plain_english":300,"sample_language":301,"common_mistake":302},"Parties, Loan Amount, and Disbursement","Identifies the lender and borrower as legal entities, states the exact principal amount, and specifies how and when the funds will be transferred.","This Loan Agreement is entered into as of [DATE] between [LENDER LEGAL NAME] ('Lender') and [BORROWER LEGAL NAME] ('Borrower'). Lender agrees to lend Borrower the principal sum of $[AMOUNT] ('Loan'), to be disbursed by [wire transfer / bank check] to [ACCOUNT DETAILS] on or before [DISBURSEMENT DATE].","Using a trade name instead of the legal entity name for either party. If the borrower defaults, enforcement action must name the correct legal entity — a mismatch delays or defeats collection.",{"name":304,"plain_english":305,"sample_language":306,"common_mistake":307},"Interest Rate and Calculation Method","States the interest rate, whether it is fixed or variable, how interest accrues (simple vs. compound), and the day-count convention used.","The outstanding principal shall bear interest at a fixed rate of [X]% per annum, calculated on a 365/365 actual-day basis. Interest shall accrue from the Disbursement Date and shall not be compounded.","Omitting the day-count convention. Whether interest is calculated on a 360- or 365-day year produces materially different amounts on large loans and creates disputes at payoff.",{"name":309,"plain_english":310,"sample_language":311,"common_mistake":312},"Repayment Schedule","Sets out the payment frequency, amount of each installment, due dates, and whether payments are interest-only, fully amortizing, or structured with a balloon payment.","Borrower shall repay the Loan in [NUMBER] equal monthly installments of $[AMOUNT] on the [DAY] of each month, commencing [START DATE], with a final balloon payment of $[BALANCE] due on [MATURITY DATE].","Specifying installment amounts that do not fully amortize the loan by the maturity date without explicitly calling the residual a balloon payment. The borrower may be surprised by a large final obligation they did not anticipate.",{"name":314,"plain_english":315,"sample_language":316,"common_mistake":317},"Security and Collateral","Describes the assets pledged as security for the loan and the lender's rights to register, perfect, and enforce the security interest.","To secure the Borrower's obligations hereunder, Borrower hereby grants to Lender a first-priority security interest in [DESCRIPTION OF COLLATERAL] (the 'Collateral'). Borrower consents to the filing of a UCC-1 financing statement or equivalent.","Describing collateral vaguely as 'all business assets.' Collateral descriptions must be specific enough to be identified and registered under applicable personal property security legislation — otherwise the security interest may be unperfected and lose priority to other creditors.",{"name":319,"plain_english":320,"sample_language":321,"common_mistake":322},"Representations and Warranties","The borrower's factual statements about its legal status, authority to borrow, absence of conflicting obligations, and financial condition — all of which the lender relies on in extending credit.","Borrower represents and warrants that: (a) it is duly organized and in good standing; (b) it has full authority to enter into this Agreement; (c) this Agreement does not conflict with any existing obligation; and (d) there is no pending or threatened litigation that would materially affect its ability to repay.","Omitting representations entirely on informal business loans. If the borrower misrepresents its financial condition and defaults, the lender has no contractual basis to pursue fraud remedies without a representations clause.",{"name":324,"plain_english":325,"sample_language":326,"common_mistake":327},"Affirmative and Negative Covenants","Ongoing obligations the borrower must maintain (affirmative) and actions it is prohibited from taking (negative) during the loan term to protect the lender's position.","During the term of this Agreement, Borrower shall: (a) maintain adequate business insurance; (b) provide annual financial statements within [X] days of fiscal year-end; and (c) not incur additional indebtedness exceeding $[AMOUNT] without prior written consent of Lender.","Using covenants copied from a large commercial loan for a small informal loan. Burdensome covenants that the borrower cannot realistically comply with trigger technical defaults that undermine the commercial relationship and the enforceability of the agreement.",{"name":329,"plain_english":330,"sample_language":331,"common_mistake":332},"Events of Default and Acceleration","Lists specific triggers that constitute default — missed payment, breach of covenant, insolvency — and the lender's right to declare the full balance immediately due and pursue remedies.","Each of the following constitutes an Event of Default: (a) failure to pay any amount due within [X] days of the due date; (b) breach of any covenant not cured within [X] days of written notice; (c) the Borrower becoming insolvent or making an assignment for the benefit of creditors. Upon an Event of Default, Lender may declare all outstanding principal and accrued interest immediately due and payable.","No cure period before acceleration. Triggering immediate acceleration on a first missed payment — without a notice-and-cure window — is often held to be unenforceable or unconscionable by courts, and can destroy an otherwise recoverable lending relationship.",{"name":334,"plain_english":335,"sample_language":336,"common_mistake":337},"Prepayment","States whether the borrower may repay the loan early, whether a prepayment penalty applies, and how prepayments are applied to principal and interest.","Borrower may prepay the Loan in whole or in part at any time without penalty. All prepayments shall be applied first to accrued interest and then to outstanding principal.","Silence on prepayment. Without a clause, the lender may argue — particularly in some jurisdictions — that a fixed-term loan cannot be prepaid without consent, trapping the borrower in interest payments they could otherwise eliminate.",{"name":339,"plain_english":340,"sample_language":341,"common_mistake":342},"Governing Law, Jurisdiction, and Dispute Resolution","Specifies which jurisdiction's law governs the agreement, where disputes must be litigated or arbitrated, and any waiver of jury trial.","This Agreement shall be governed by the laws of the State of [STATE], without regard to conflict-of-law principles. Any dispute shall be resolved by binding arbitration in [CITY, STATE] under the rules of [AAA / JAMS], except that either party may seek injunctive relief in any court of competent jurisdiction.","Choosing a governing law with no connection to where the lender or borrower is located or the loan was made. Courts in the borrower's home state may apply local usury laws and consumer protection statutes regardless of what the contract says.",{"name":344,"plain_english":345,"sample_language":346,"common_mistake":347},"Entire Agreement, Amendments, and Waiver","Confirms the written agreement is the complete and final record of the loan terms, that changes require a signed writing, and that failure to enforce a term on one occasion does not waive it permanently.","This Agreement constitutes the entire agreement between the parties with respect to the Loan and supersedes all prior discussions and representations. No amendment shall be effective unless signed by both parties. No waiver of any provision shall be deemed a waiver of any other provision or of the same provision on any other occasion.","Allowing oral amendments. If the lender verbally agrees to extend a payment deadline and the borrower later defaults, a court may enforce the oral extension against the lender unless a written-amendment-only clause is present.",[349,354,359,364,369,374,379,384],{"step":350,"title":351,"description":352,"tip":353},1,"Identify the parties with their full legal names","Enter the lender's and borrower's complete legal entity names — registered corporate name, LLC name, or full personal name — along with their addresses and entity type.","For corporate borrowers, confirm the registered name matches the secretary of state filing before execution. A mismatch voids the security interest on registration.",{"step":355,"title":356,"description":357,"tip":358},2,"Set the principal amount and disbursement method","State the exact loan amount in figures and words, the account or method of transfer, and the date funds will be sent. Specify the currency explicitly for any cross-border loan.","Wire the funds only after both parties have signed. Disbursement before execution means you have no signed agreement governing the money already transferred.",{"step":360,"title":361,"description":362,"tip":363},3,"Define the interest rate and calculation basis","Choose a fixed or variable rate. If variable, tie it to a published benchmark (e.g., US Prime Rate plus [X]%) with a floor and cap. State whether interest is simple or compound and specify the day-count basis (365/365 actual or 30/360).","Check the usury ceiling for the governing state or province before setting the rate. Rates above the legal maximum void the interest clause — and in some jurisdictions, forfeit all interest collected.",{"step":365,"title":366,"description":367,"tip":368},4,"Build the repayment schedule","Choose installment frequency (monthly, quarterly, or bullet), set the first payment date, and verify that the payment amounts fully amortize the loan by the maturity date. If a balloon remains, label it explicitly.","Attach a complete amortization table as an exhibit. It eliminates payment disputes and gives both parties a running record of principal outstanding.",{"step":370,"title":371,"description":372,"tip":373},5,"Describe the collateral and plan for perfection","If the loan is secured, describe the collateral with enough specificity for a UCC-1 or PPSA filing — serial numbers for equipment, legal descriptions for real property, or a specific account number for cash collateral.","File the UCC-1 or PPSA financing statement the same day you fund the loan. Priority is determined by filing date, not signing date — a delay lets other creditors jump ahead.",{"step":375,"title":376,"description":377,"tip":378},6,"Tailor the covenants to the borrower's actual obligations","Include only covenants the borrower can realistically maintain. At minimum: keep business insurance, provide annual financials, and notify the lender of any material adverse change within 30 days.","A covenant the borrower cannot meet triggers an immediate technical default. Calibrate requirements to the borrower's size and sophistication.",{"step":380,"title":381,"description":382,"tip":383},7,"Set the default triggers and cure periods","List specific events of default and include a cure period of at least 10–15 days for payment defaults and 30 days for covenant breaches before acceleration becomes available.","Courts look for good-faith dealing. A cure period shows it and makes acceleration far easier to enforce when the borrower truly refuses to remedy a breach.",{"step":385,"title":386,"description":387,"tip":388},8,"Execute before funds are transferred","Both parties must sign — and any guarantor must sign a separate guarantee — before the loan is funded. Date the agreement to match the actual signing date, not the intended disbursement date.","Use witnessed or notarized signatures for loans above $50,000 or for real-property-secured loans, even when not legally required. It substantially reduces authenticity challenges if enforcement becomes necessary.",[390,394,398,402,406,410],{"mistake":391,"why_it_matters":392,"fix":393},"No written agreement at all for informal loans","Courts in every common-law jurisdiction treat undocumented loans as gifts or equity contributions unless the lender can prove repayment was expected. Recovering funds without a signed agreement typically requires costly litigation with uncertain outcomes.","Execute a written loan agreement before any funds change hands, even for loans between friends, family members, or business partners. A one-page agreement is enforceable; a verbal promise usually is not.",{"mistake":395,"why_it_matters":396,"fix":397},"Setting an interest rate above the jurisdictional usury ceiling","Usury laws cap permissible interest rates for most loan types. Exceeding the ceiling voids the interest clause entirely in many US states and can result in forfeiture of all interest already collected, plus penalties.","Confirm the applicable usury limit for the governing jurisdiction and loan type before drafting. Commercial loans between businesses often have higher or no ceilings; consumer loans are regulated more strictly.",{"mistake":399,"why_it_matters":400,"fix":401},"Vague or unperfected collateral description","A security interest in 'all business assets' or 'equipment' without serial numbers or specific identification may be unperfected under UCC or PPSA rules, leaving the lender as an unsecured creditor in bankruptcy — behind all secured creditors.","Describe collateral with the specificity required for a public financing statement filing, and file the UCC-1 or PPSA registration on the same day the loan is funded.",{"mistake":403,"why_it_matters":404,"fix":405},"No cure period before triggering acceleration","Immediate acceleration on a first missed payment — with no notice or opportunity to cure — is routinely found unconscionable or unenforceable by courts, particularly where the borrower had a strong prior payment history.","Include a written notice requirement and a cure period of at least 10 business days for payment defaults before the lender may exercise acceleration or enforcement rights.",{"mistake":407,"why_it_matters":408,"fix":409},"Disbursing funds before the agreement is signed","If the borrower declines to sign after receiving the funds, the lender has no written terms governing the obligation — no interest rate, no repayment schedule, no security, and no defined default triggers.","Make funding contingent on receipt of a fully executed agreement. For large loans, use an escrow agent to hold funds until all signing conditions are satisfied.",{"mistake":411,"why_it_matters":412,"fix":413},"Omitting a governing law clause","Without a governing law clause, courts apply conflict-of-law rules that may select an unexpected jurisdiction — potentially one with lower usury ceilings, stronger borrower protections, or different enforcement procedures.","Always specify governing law and venue. Choose the jurisdiction where the lender or borrower is incorporated and ensure it is a valid choice-of-law selection under that jurisdiction's rules.",[415,418,421,424,427,430,433,436,439],{"question":416,"answer":417},"What is a loan agreement?","A loan agreement is a legally binding contract between a lender and a borrower that records the terms under which money is lent and repaid. It specifies the principal amount, interest rate, repayment schedule, collateral (if any), events of default, and remedies available to the lender if the borrower fails to repay. Both business and personal loans can be documented with a loan agreement.\n",{"question":419,"answer":420},"What is the difference between a loan agreement and a promissory note?","A promissory note is a short, one-sided promise by the borrower to repay a sum under stated terms — typically one to two pages with minimal covenants. A loan agreement is a bilateral contract signed by both parties that includes detailed representations, covenants, collateral provisions, and default remedies. Promissory notes suit simple short-term loans between parties with a strong existing relationship; loan agreements are appropriate for any loan where the lender needs ongoing protections during the loan term.\n",{"question":422,"answer":423},"Does a loan agreement need to be notarized?","In most jurisdictions, notarization is not required for a loan agreement to be enforceable. However, notarization — or witnessed signatures — is strongly recommended for loans above $50,000, for any loan secured by real property, and for loans that will be registered as a lien. Some US states require notarization for mortgage-backed loans, and certain international jurisdictions require notarization for all secured lending instruments.\n",{"question":425,"answer":426},"What interest rate can I charge on a private loan?","The maximum permissible interest rate — the usury ceiling — varies by jurisdiction and loan type. In the US, state usury laws govern most private loans; commercial loans between businesses often have higher or no ceilings, while consumer loans face stricter limits. In Canada, the Criminal Code prohibits effective interest rates above 60% per annum on most loans. Consider consulting a lawyer to confirm the applicable ceiling before setting a rate.\n",{"question":428,"answer":429},"Is a loan agreement between family members legally enforceable?","Yes — a properly executed written loan agreement between family members is generally enforceable in the same way as any other contract, provided it includes a clear offer, acceptance, and consideration (the loan itself serves as consideration). Family loans documented in writing are also treated as genuine debt for tax purposes. Undocumented family loans are commonly recharacterized as gifts by tax authorities and courts.\n",{"question":431,"answer":432},"What happens if a borrower defaults on a loan agreement?","When a defined event of default occurs and any applicable cure period expires without remedy, the lender may typically: (a) accelerate the full outstanding balance, making it immediately due; (b) enforce security interests and take possession of collateral; (c) pursue the borrower or any guarantor for the outstanding balance through litigation or arbitration; and (d) charge default interest at the rate specified in the agreement. The specific remedies available depend on the terms of the agreement and applicable law.\n",{"question":434,"answer":435},"Do I need a lawyer to write a loan agreement?","For straightforward unsecured business loans or simple personal loans between known parties, a well-drafted template is typically sufficient. Engage a lawyer when the loan is large (above $100,000), when real property or a complex business asset is pledged as collateral, when the borrower is a regulated entity, when the loan is cross-border, or when the lender intends to sell or assign the loan to a third party. A 1–2 hour template review typically costs $300–$700 and is worthwhile for any loan above $50,000.\n",{"question":437,"answer":438},"What is an intercompany loan and does it need a formal agreement?","An intercompany loan is a loan between related entities — such as a parent company lending to a subsidiary. Tax authorities in the US, Canada, the UK, and the EU scrutinize intercompany loans closely and may recharacterize them as equity contributions (eliminating interest deductibility) or apply transfer-pricing adjustments if the interest rate is not at arm's length. A formal written loan agreement at a market interest rate is essential for any intercompany arrangement to withstand audit scrutiny.\n",{"question":440,"answer":441},"Can a loan agreement be amended after signing?","Yes, with the written consent of both parties. Most loan agreements include an entire-agreement clause requiring that any amendment be signed in writing by both the lender and borrower to be effective. Verbal agreements to extend a maturity date or waive a missed payment are generally not enforceable where a written-amendment-only clause is present, though courts in some jurisdictions may recognize promissory estoppel where the borrower reasonably relied on a verbal modification.\n",[443,447,451,455,459,463],{"industry":444,"icon_asset_id":445,"specifics":446},"Real Estate","industry-real-estate","Secured loans against property require a deed of trust or mortgage instrument alongside the loan agreement, plus title insurance and formal lien registration.",{"industry":448,"icon_asset_id":449,"specifics":450},"Technology / SaaS","industry-saas","Bridge loans and convertible notes used between equity rounds often include a conversion mechanism tied to a qualified financing event at a specified valuation cap or discount rate.",{"industry":452,"icon_asset_id":453,"specifics":454},"Manufacturing","industry-manufacturing","Equipment-secured loans require serial-number-level collateral descriptions and UCC or PPSA filings to maintain priority over subsequent creditors and bankruptcy trustees.",{"industry":456,"icon_asset_id":457,"specifics":458},"Professional Services","industry-professional-services","Working-capital loans to professional firms often include negative covenants restricting additional debt and affirmative covenants requiring minimum monthly revenue reporting.",{"industry":460,"icon_asset_id":461,"specifics":462},"Retail / E-commerce","industry-retail","Inventory-secured loans use floating-charge collateral descriptions and require periodic borrowing-base certificates to confirm collateral value relative to the outstanding balance.",{"industry":464,"icon_asset_id":465,"specifics":466},"Healthcare","industry-healthtech","Loans to healthcare entities must account for regulatory restrictions on the assignment of Medicare and Medicaid receivables as collateral, which require prior government consent in most jurisdictions.",[468,471,474,477],{"vs":74,"vs_template_id":469,"summary":470},"promissory-note-D418","A promissory note is a short, borrower-signed promise to repay that lacks bilateral covenants, representations, or detailed default mechanics. A loan agreement is a full bilateral contract signed by both parties with ongoing obligations on both sides. Use a promissory note for simple, short-term, low-risk loans; use a loan agreement whenever the lender needs ongoing covenant protections or is taking collateral.",{"vs":247,"vs_template_id":472,"summary":473},"D{LINE_OF_CREDIT_ID}","A line of credit agreement governs a revolving facility the borrower can draw and repay multiple times up to a set limit. A loan agreement covers a single fixed disbursement with a defined repayment schedule. Lines of credit suit working-capital needs with variable timing; loan agreements suit one-time capital expenditures or acquisitions where the amount and schedule are known at the outset.",{"vs":255,"vs_template_id":475,"summary":476},"D{CONVERTIBLE_NOTE_ID}","A convertible note is a loan that is designed to convert into equity upon a future financing event, typically at a discount or valuation cap. A standard loan agreement is not intended to convert — it is repaid in cash. Convertible notes are common in early-stage startup financing; standard loan agreements are used when the lender expects cash repayment and is not seeking an equity stake.",{"vs":90,"vs_template_id":478,"summary":479},"personal-guarantee-D13628","A personal guarantee is a supplementary document in which an individual agrees to be personally liable for a business borrower's debt. It is used alongside a loan agreement, not instead of one. When lending to a small corporation or LLC, lenders typically require both a signed loan agreement and a personal guarantee from the principal to reach beyond the entity's assets.",{"use_template":481,"template_plus_review":485,"custom_drafted":489},{"best_for":482,"cost":483,"time":484},"Unsecured business or personal loans under $50,000 between known parties in a single jurisdiction","Free","30–60 minutes",{"best_for":486,"cost":487,"time":488},"Secured loans, loans above $50,000, intercompany loans, or any loan requiring UCC or PPSA registration","$300–$700 (1–2 hour attorney review)","1–3 days",{"best_for":490,"cost":491,"time":492},"Commercial real estate loans, cross-border lending, regulated lender compliance, or syndicated facilities","$1,500–$8,000+","1–4 weeks",[494,499,504,509],{"code":495,"name":496,"flag_asset_id":497,"note":498},"us","United States","flag-us","State usury laws set maximum interest rates; limits vary widely — New York caps most personal loans at 16% while many states have no ceiling for commercial loans between businesses. Security interests in personal property must be perfected by filing a UCC-1 financing statement with the Secretary of State in the debtor's jurisdiction. Some states require specific font sizes and disclosure language for consumer loan agreements.",{"code":500,"name":501,"flag_asset_id":502,"note":503},"ca","Canada","flag-ca","The federal Criminal Code prohibits effective interest rates above 60% per annum on any loan. Security interests in personal property are governed by provincial Personal Property Security Acts (PPSA); the registration province is determined by the debtor's location. Quebec civil law differs materially from common-law provinces — loan agreements for Quebec borrowers should reference the Civil Code of Quebec and may require a notarial act for mortgage-secured loans.",{"code":505,"name":506,"flag_asset_id":507,"note":508},"uk","United Kingdom","flag-uk","Consumer credit agreements for loans up to £25,000 to individuals or sole traders must comply with the Consumer Credit Act 1974, including prescribed form requirements and a 14-day cooling-off right. Business-to-business loans are less regulated but must comply with the Financial Services and Markets Act if the lender is not FCA-authorized. Security over company assets typically requires registration at Companies House within 21 days.",{"code":510,"name":511,"flag_asset_id":512,"note":513},"eu","European Union","flag-eu","Consumer loan agreements are harmonized under the Consumer Credit Directive and the Mortgage Credit Directive, requiring standardized pre-contractual information and a 14-day withdrawal right. Business lending is governed by member-state law, which varies significantly — Germany's Civil Code (BGB) imposes strict usury limits (more than twice the market rate is void), while other member states are more permissive. Cross-border loans between EU entities should address withholding tax obligations on interest payments under applicable bilateral tax treaties.",[240,515,516,517,518,519,520,521,522,523,524,525],"personal-guarantee-D405","non-disclosure-agreement-nda-D12692","independent-contractor-agreement-D160","sales-invoice-D383","purchase-order-D1411","partnership-agreement-D12551","shareholders-agreement-D1016","employment-agreement_at-will-employee-D541","service-agreement-D12711","credit-note-D13639","business-plan-canvas-(one-page)-D12527",{"emit_how_to":184,"emit_defined_term":184},{"primary_folder":116,"secondary_folder":528,"document_type":529,"industry":530,"business_stage":531,"tags":532,"confidence":538},"loans-and-promissory-notes","agreement","general","all-stages",[533,534,535,536,537],"contract","legal","finance","loan-agreement","lending",0.95,"\u003Ch2>What is a Loan Agreement?\u003C/h2>\n\u003Cp>A \u003Cstrong>Loan Agreement\u003C/strong> is a legally binding contract between a \u003Cstrong>lender\u003C/strong> and a \u003Cstrong>borrower\u003C/strong> that records every material term of a lending arrangement — the principal amount, interest rate and calculation method, repayment schedule, collateral pledged as security, ongoing obligations of the borrower during the loan term, events of default, and the lender's remedies if the borrower fails to repay. Unlike a casual IOU or a one-sided promissory note, a loan agreement is signed by both parties and creates enforceable obligations running in both directions: the lender's obligation to advance funds and the borrower's obligation to repay them on defined terms. It functions as the primary legal record of the debt and is the document courts, tax authorities, and insolvency administrators rely on to determine the rights of each party.\u003C/p>\n\u003Ch2>Why You Need This Document\u003C/h2>\n\u003Cp>Lending or borrowing money without a written loan agreement is one of the costliest mistakes in business finance. Without a signed agreement, a lender cannot prove the interest rate that was agreed, cannot enforce a specific repayment timeline, and has no contractual basis to accelerate repayment or seize collateral when the borrower stops paying. Tax authorities routinely recharacterize undocumented loans — including intercompany loans between related businesses — as equity contributions or gifts, eliminating interest deductibility and triggering deemed dividend treatment. In insolvency proceedings, an undocumented creditor typically ranks below all documented secured and unsecured creditors, recovering little or nothing. A properly drafted loan agreement, executed before funds are disbursed, closes every one of these gaps: it establishes enforceable repayment terms, protects the lender's priority through collateral registration, and provides the written record required to survive tax audit scrutiny and court challenge. This template gives you a structured, attorney-informed starting point for any business or private loan — ready to customize, execute, and file in under an hour.\u003C/p>\n",1781186015659]