Orlando Loan Agreement Lawyers
If you need money to launch your business, you may want to speak to our business loan agreement lawyers in Orlando, Florida at Legal Counsel, P.A. before you sign any loan document. A business might seek a loan for many reasons. In some cases, a business takes out a loan to launch their startup. In other cases, businesses might take out a loan to purchase property. Some businesses require specialized equipment. A loan can help these businesses get the equipment they need to operate. If you plan to start a sales business, you may need a loan to buy your initial inventory.
Just as there are many reasons a business might want to get a loan, there are also many different ways a business can get the loan for the money they need. Some businesses choose to use the traditional route of securing a loan from a bank. Other businesses may secure a loan from a private individual, investor, or other party. If you are getting a business loan with a bank, you’ll likely use the bank’s own loan agreements. If you have questions about your rights and responsibilities under these loan agreements, you may want to speak to our business loan agreement lawyers in Orlando, Florida at Legal Counsel, P.A., who can help you understand your business loan options and help you navigate the loan process. If you plan to take out a loan with a private individual, it is important to protect your interests. While you might consider using a template, you may want to speak to our business loan agreement lawyers at Legal Counsel, P.A. in Orlando, Florida before signing a template loan agreement. Laws can vary from state to state and location to location. It is important that you understand what you are signing before you take out a loan.
If you are an individual or business considering making a loan to a business or other individual, it is important that you protect your interests and rights. Our loan agreement lawyers in Orlando, Florida at Legal Counsel, P.A. can review your loan agreement contract to ensure that it protects you. A loan agreement can include many diverse moving parts. For example, will you charge interest? If you plan to charge interest, how will interest be assessed? How will repayment be scheduled? Will you require collateral on the loan? And what penalties will the borrower face if they fail to pay the loan on time? Speak to our business loan agreement lawyers at Legal Counsel, P.A. in Orlando, Florida who can help you answer these questions and more. Have questions? We have answers. Contact Legal Counsel, P.A. today at 407-982-4321.
What Should Be Included in a Loan Agreement?
A loan agreement should clearly outline the parties involved in the agreement. A loan agreement will also include a promissory note. The promissory note is one party’s agreement to pay the other party for the loan being issued. Some loans might be secured by property or assets. Other loans are not secured. The collateral is any property or asset that can be seized if the person signing the loan document fails to pay the loan. Sometimes the collateral is property and sometimes it might be business assets. It is important that the loan agreement also be very specific about the loan amount, how long the loan will be in repayment, the payment schedule for the loan, and the interest rate of the loan. The interest rate can be fixed or variable. If you have a variable (or changeable) interest rate loan, it is incredibly important that you understand the highest possible payment you could face under this loan and plan ahead for that. A variable interest rate loan will often be based on the prime interest rate plus points. Before signing a loan with a changeable interest rate, you should do your homework and understand how often the rate can change, when the rate can change, and what your maximum possible repayment might be. Many companies and individuals have gone underwater because they didn’t plan ahead on changeable rate loans. Finally, you’ll want to see if you face any penalty for pre-paying the loan and look at what the penalties are for non-payment.
You may also be required to provide information to the lender, such as your business income, assets, show that you have paid all your taxes, and ensure that there are no liens or lawsuits that would impact your ability to repay the loan. You may also be required to have insurance to protect the lender should you not be able to repay. If you are purchasing property with the loan, this insurance may include property insurance, and if you are taking out a business loan, you may be required to take out life insurance. Have questions? We have answers. Contact Legal Counsel, P.A. today at 407-982-4321.
When Do I Need a Loan Agreement?
Anytime you lend money to another party, you should have a loan agreement in place. Parents who lend money to their children may want to have a loan agreement for legal and tax purposes. Friends who lend money to their friends to launch a business may want to have a loan agreement in writing to ensure that money is paid back in a timely manner. If you are thinking of making a personal loan, consider speaking to our loan agreement attorneys in Orlando, Florida at Legal Counsel, P.A. who can help you understand your options and rights. Have questions? We have answers. Contact Legal Counsel, P.A. today at 407-982-4321.
