A business term loan contract is a legal contract signed between two parties wherein business term loan is obtained by the borrower from the lender. The contract sets out the terms and conditions of the business term loan as specified by the lender. The business term loan contract specifies terms of the loan such as interest rate, period of the term loan and the repayment terms etc. A sample business term loan contract is provided below for better understanding.
Sample Business Term Loan Contract:
Business term loan contract: Loan 6-5555
This Business term loan contract is entered into with the borrower on all the terms and conditions specified with effect from July 24, 2011.
The contract is between Brookes company Ltd having registered address as #255, Hill side, Battersea, London, UK and Cletus Finance Ltd, having registered address as Studio 4, Victoria building, Wands worth, London UK.
Terms and Conditions of Business Term Loan Contract
Name and Address:
Lender: Cletus Finance Ltd,
Address: Victoria building, Studio 4, Wands worth, London UK.
Borrower: Brookes company Ltd,
Address: No 255 Hill side, Battersea, London, UK.
The loan amount is four hundred thousand. The actual principle borrowed is 200,000 pounds
The loan term is from July 24, 2011 to June 20, 2012.
The loan should be used only for business purpose and the funds should not be diverted.
Rate of interest for the loan is 8.5 %.
Borrower can repay principal in full payment after 6 months from the date of contract.
The interest should be paid with first 10 days every month.
If any violation and misconduct is recorded from any of the parties, this contract will be dissolved.
Hereby, both the parties will accept the Business Term loan Contract:
Signature of the Borrower:
Brookes Company Ltd
Signature of the Lender:
Cletus Finance Ltd