Loan agreement

Company; secured by guarantee
15 Reviews
Select support levelCompare
Recommended

Document overview

An agreement between a lender, who may be an individual or a corporate body, and a borrower, who is a company. Guarantee (probably by directors of company). Strong provisions to protect the lender. Options for alternative repayment provisions and lender actions if borrower defaults. Many other options.
Compliant
Compliant with the latest law in
  • AB
  • BC
  • MB
  • ON
  • SK
Document propertied
Document properties
  • Length:11 pages (3000 words)
  • Available in:
    MsWordMicrosoft Word DOCXApple pagesApple PagesRTFRTF
watertight guarantee
Backed by our watertight guarantee

If the document isn’t right for your circumstances for any reason, just tell us and we’ll refund you in full immediately.

writing in plain english
Written in plain English

We avoid legal terminology unless necessary. Plain English makes our documents easy to understand, easy to edit and more likely to be accepted.

Notes
Guidance notes included

You don’t need legal knowledge to use our documents. We explain what to edit and how in the guidance notes included at the end of the document.

email
Support from our legal team

Email us with questions about editing your document. Use our Lawyer Assist service if you’d like our legal team to check your document will do as you intend.

Update
Up to date with the latest law

Our documents comply with the latest relevant law. Our lawyers regularly review how new law affects each document in our library.

About this secured loan agreement

This secured loan agreement is for use when borrower is a company or other corporate body, or a trust. It is drawn so that lender is also a corporate body, but the lender may as easily be an individual or a trust. It is drawn primarily to protect the lender, but if you are the borrower, you have the opportunity to edit any point you would prefer not to include.

The lender has the security of the personal guarantee of one or more directors and/or their spouses and/or some other third party. The guarantee is worded to cover every obligation of the borrower. In many cases, a guarantor is much more effective than other types of security (like houses, shares or jewellery) because non-repayment risks a relationship and the reputation of the guarantor as well as of the borrower. Another advantage is that, in most situations, the lender only needs to satisfy himself that the guarantor has sufficient assets overall, and therefore doesn’t have to perform detailed valuations of individual items.

The agreement may be for a loan by a family member to her nephew’s business; by a business angel who has also taken shares; or simply an arm’s length “investment”.

There is no limit in law on the interest that the lender charges. We have provided for a greater rate of interest if the borrower falls behind with repayments. (That is done very carefully so as to avoid it being treated as a “penalty” - not allowed in Canadian law.)

The agreement could be whatever you want to put in it, but we have provided a sound and comprehensive proposal containing many options. It is supported by extensive drafting notes so that you will know whether you can safely delete some provision. It is most unlikely that you will want to add new provisions, but if you do, it is easy. Our layout and use of plain English makes it very easy to edit by deletion.

Because the borrower is a company, we have included a small raft of warranties. These take effect as promises by the borrower as to aspects of its financial state. We have also provided that the signatory accepts personal liability for his proper authorisation. To some extent that person is bound in the same way as the company. All the better if he is a guarantor.

The law in this secured loan agreement

There is little statutory regulation relating to an agreement of this nature, so you can make, more or less, the deal you choose.

Drawn outside the consumer credit legislation, this agreement is not suitable for companies in the business of lending or providing credit to consumers.

Alternatives to this secured loan agreement

Net Lawman offers three documents in this set. Each is available in two versions: one for a company borrower and the other set for a human individual or partnership borrower. All can be for any purpose.

The documents are:

Contents of this secured loan agreement

The contents of this agreement include:

  • Important interpretation provisions;
  • Purpose of loan;
  • Amount of loan and how advanced;
  • Repayment provisions;
  • Interest amount and arrangements;
  • Provision for early repayment;
  • Promise by borrower to make no change to capital structure;
  • What happens if things go wrong - notices, consequences and so on;
  • An option on possible assignment of the rights and obligations set up under the agreement;
  • Borrower’s warranties;
  • Guarantor’s obligations;
  • A round up of legal matters which many draftsmen use to create another ten paragraphs. Here they are in one place and in plain English;
  • Around 1200 words of helpful drafting notes.
Sample loan agreementFront cover

Recent reviews

Smooth Process
04 March 2021
It was simple for me to find, pay for and download the document I needed. It was also easy to amend the document to be specific to my needs and the review and feedback process worked very well. Responses were prompt too.
Melissa Jimenez
Review of the Australian version
Easy to adapt
21 April 2014
Excellent .These agreements are written in an easy to read and understand forma and can be quickly adapted to suit a particular set of circumstances without compromising their effectiveness. They are also realistically priced.
Robert McIntyre
Review of the Australian version
Great Service
02 November 2023
the document was comprehensive, however still easy to navigate through. The prompts of where to input the specific details was very good. A very useful document. Thanks.
Andrew Bloxham
Review of the Australian version
Read all 15 reviews

Choose the level of support you need

Document Only

Complete the document template yourself using our guidance notes
C$39.00
  • ok This document
  • okDetailed guidance notes explaining how to edit each paragraph
Most Popular

Lawyer Assist

Support from our legal team during and after editing
212 Reviews
C$289.00
  • ok This document
  • okDocument with guidance notes explaining how to edit each paragraph
  • okUnlimited email support - ask our legal team any question related to completing the document
  • ok
    Review of your edited document by our legal team including:
    • reporting on whether your changes comply with the law
    • answering your questions about how to word a new clause or achieve an outcome
    • checking that your use of defined terms is correct and consistent
    • correcting spelling mistakes
    • reformatting the document ready to sign
© 1999 - 2024 Net Lawman Limited.
All rights reserved