Documented loan agreements protect you and avoid unnecessary future complications
Time passes, conversations are forgotten, people’s memories conveniently fade. Deals made get lost in translation.
Whether you are loaning money to a friend, family member or business, don’t commit until you have the deal documented into a legal loan agreement.
A written agreement is essential if things go wrong to ensure that you can recover everything that you are entitled to under the loan agreement. Quite often if the agreement is verbal and over a long period of time the parties to the agreement may have differing recollections of the original agreement.
Putting a loan agreement in writing ensures that both parties are left in no doubt as to the terms of the agreement, especially the requirement for repayment of the loan. The payment terms and if interest is payable or not. Quite often loans to family members do not get repaid when things turn sour and the borrower then argues that the money was a gift and not a loan. It’s simply not worth the hassle.
Having a written agreement, regardless of your relationship with the borrower ensures that there is no argument of this type should things deteriorate.
If the loan agreement is of significant value think about taking out a Mortgage to protect your loan.
Would you benefit from talking to Patrick Sheridan for 10 minutes to resolve your most immediate loan agreement questions? Patrick will review your situation and give you the practical advice you need right now.
The answer will help determine the best course of action for you, your family and your future.
Ask Patrick your questions today.