Loan Lawyer

What is a Loan Agreement?

A loan agreement is an agreement where one party, usually known as a lender, agrees to lend money to another party, usually known as the borrower. Loans can be categorized in different ways and can be made to a business or to a person.

A loan agreement or credit agreement is one of the loan documents used to document the terms and conditions of a loan. In addition to a loan agreement, other loan documents tied to a loan may include a guarantee and a general security agreement.

Loans may be secured or unsecured. 

Secured vs Unsecured Loans

A secured loan is one where a lender secures the obligations of at least the borrower by grant of a security interest by the borrower over the assets or a specific asset of the borrower (known as collateral).

An unsecured loan is one where the lender is not granted a security interest over collateral. In unsecured loan transactions, the lender risks not being able to recover if the borrower fails to perform its obligations under the loan (i.e., does not repay the loan with interest).

Loan Transactions

Are you receiving financing for your company, or perhaps you are looking to lend a friend money, or are you entering into a loan agreement? It is very important for a borrower and lender to understand the terms of a loan.

For a lender, it is important to consider many different items before lending money, including but not limited to the following:

• Security options.
• Whether searches will be conducted against the borrower.
• Time.
• The borrower's business.
• Other provisions included in loan documents.

For a borrower, it is most important to consider the ramifications of receiving a loan, and what consequences arise if the loan cannot be repaid.

Contact a Mississauga Loan Lawyer

Our business lawyer and finance lawyer can assist you with legal services surrounding lending, loans, and financing for your company. Whether you are an individual or a corporate client, it is important to understand legal ramifications in this area.

Our business lawyer offers services to assist you with lending, loans and financing for your company. Contacts our lawyer today for a no-obligation consultation by telephone. Our law firm offers services across the Greater Toronto Area, including Mississauga, Oakville, Brampton, Milton, Hamilton, Kitchener, Waterloo, Guelph, Newmarket, Vaughan, and North York.