loan-agreement

Vocabulary Word

Definition

A 'loan agreement' is a legal contract between a borrower and a lender. It outlines the terms of the loan like how much, the repay time and the interest rate.

Examples in Different Contexts

In small business financing, a 'loan agreement' is critical for securing funds needed for growth or operations. A business owner might discuss, 'Our loan agreement with the bank includes a clause for early repayment without penalty, giving us flexibility in managing our finances.'

Practice Scenarios

Business

Scenario:

As the CEO,I'm concerned about the language in clause 8. We've to ensure it doesn't jeopardize our future financial stability.

Response:

Agree. Let's revisit the loan agreement and negotiate the terms if needed.

Tech

Scenario:

This new software development project might require additional funds. We need a detailed plan to secure and manage the resources we need.

Response:

Considering the scope of the project, it may be beneficial to prepare a loan agreement for the additional funds.