CONSIDERING that the lender lending certain funds (the „Loan“) to the Borrower and the Borrower who will repay the Loan to the Lender, both Parties undertake to respect, respect and respect the commitments and conditions set out in this Agreement: the loan is a significant commitment, regardless of the amount, which is why it is important: to protect both parties by a credit agreement. A credit agreement not only describes the terms of the loan, but it also serves as proof that the money, goods or services were not a gift to the borrower. This is important because it prevents someone from trying to get out of the refund by claiming it, but it can also help you make sure it`s not a problem with the IRS later. Even if you think you may not need a credit agreement with a friend or family member, it`s still a good idea to have it just to make sure there won`t be any problems or disagreements afterwards about the terms that could ruin a valuable relationship. Before you lend money to someone or provide services without paying, it`s important to know if you need to have a credit agreement to protect yourself. You never really want to borrow money, goods or services without having a credit agreement, to make sure you are reimbursed or that you can take legal action to repay your money. The purpose of a credit agreement is to describe in detail what is borrowed and when the borrower must repay it and how. The credit agreement has specific conditions that describe exactly what is given and what is expected in return. Once executed, it is essentially a promise to pay by the lender to the borrower. In addition to the main sections described above, you have the option to add additional sections to deal with certain elements as well as a section to make the validity of the document indisputable. Each credit agreement is different, so use the section with the additional terms of the agreement to include additional terms that have not yet been covered.
In this section, you must insert complete sentences and ensure that you do not contradict anything that was previously included in the credit agreement unless you indicate that a specific section does not apply to that specific credit agreement. Credit agreements are usually written, but there is no legal reason why a credit agreement should not be a purely oral agreement (although oral agreements are more difficult to enforce). You might also want to receive information about prepayment if the borrower wants to repay the loan early. Many borrowers are worried about the down payment and you should include in your credit agreement a clause that talks about advance options, if any. If you authorize an advance payment, you must include this information and details, whether they can pay the full amount or only a portion in advance and whether you ask for an advance payment fee if they wish.. . .