What is a business loan agreement?

The total price for this loan agreement is €125,00 ex. vat. This amount will be invoiced once this form is completed.

A loan agreement arranges all the legal aspects of a business loan. It covers among other things the amount to be borrowed, how much interest the debtor has to pay and how and when to repay the loan.

In the loan agreement you will agree on the amount to be borrowed. But you also make agreements about when and how the loan will be paid out.
Almost always there will be interest on a loan. In many cases, this is even a tax obligation. In the loan agreement you make agreements about the amount of the interest. Over time, a loan will have to be repaid. We call that repayment. This can happen all at once, but you can also agree to repay an amount periodically.

What are key considerations in a loan agreement?

Loan Amount
Naturally, in the loan agreement, you determine the amount to be borrowed. Additionally, you agree on when and how the loan will be disbursed.

Interest
Generally, interest is paid on a loan. In many cases, this is even a fiscal requirement. In the loan agreement, you establish the rate of interest.

Repayment
Over time, a loan must be repaid. This is called repayment. This could be done in one lump sum, but you can also agree to make periodic payments towards the loan.

Should a mortgage be established as security for the repayment of the loan?

You can ask for a right of mortgage, so that you have more certainty about the repayment of the loan. This right of mortgage must be established via the notary. The notary draws up a mortgage deed in which the (legal) conditions for the right of mortgage are included. If the loan is not repaid, you can use the right of mortgage to, for example, sell the registered property on which the mortgage has been established, such as a house or business premises, to the public. You do not have to go to court for this, but a notary must be present at the sale. Your loan will then be repaid from the proceeds.

Should a pledge be established as security for the repayment of the loan?

You can ask for a pledge on the borrower’s goods, so that you have more certainty about the repayment of the loan. If the loan is not repaid, you have the right, on the basis of the pledge, to sell these goods publicly. Your loan will then be repaid from the proceeds.

Process and Pricing for Loan agreement

After you have fulfilled the checkout process, we will send you a form where you will out a few details about yourself, your company and your company structure. Once this has been filled out we will start working on your Loan agreement. This takes on average 1-2 working days.