Very Simple Loan Agreement
In the absence of a clear method of repayment, the loans could be late, or the lender could exploit the borrower and confiscate all of its assets. Credit agreements are used as follows: the loan amount is printed in a draft credit agreement. Printed terms prevent future disputes over credit terms. If there is interest on the amount of the credit, the amount of interest is also part of the documented document. If the amount of credit is clear, it is guaranteed that there is no disagreement on what the borrower receives. The borrower is also aware of repayment expectations. Repayment expectations include the amount of the loan plus interest. It also includes the length of the period during which the borrower must repay the full amount. .