Loads of folks are in need of financing or money but there is no readily supply of it. In these times of economic recession, it is hard to get by crisis if you do not have the right amount of financial back up. There are also those people who are considering putting up their own business and may need the financial capital to do so. These are just a couple of reasons why people need the money. The most common financial resource for these common problems is to get a loan. Anytime you are considering getting a loan from a financial or lending institution, it is imperative that you must sign a loan agreement.
Getting to know loan agreement
A loan agreement is a document wherein the terms and agreement of the lender and debtor is put into writing. It is the documentation that binds both lender and debtor to the terms of the loan. The agreement is also deemed as a protection for both parties if any of the said parties cannot deliver the obligation as agreed.
The content of the loan agreement includes the precise details of the agreement that has transpired between lender and debtor. Not only that, the agreement should also consider the standard government laws that is already in effect or established. Since the laws were created to protect all people, it is beneficial to both parties concerned. To stay clear of any legal involvement, both parties concerned must comply and honor all agreements made. Since the loan agreement serves as a contract and legal documentation, a violation of the terms and agreements can lead to a legal case and the written agreement can function as proof in court.
What to define
Defined and addressed in the contract are the issues concerning the agreement. First and foremost, the rights and obligations of both parties must be defined in the written contract. Termination of contract and termination fees should also be included. Commonly, you will find the interest rates and other applicable fees included in the agreement. Whatever is agreed regarding applicable penalties for late or inability to comply should not only be discussed but also defined. Payment deadlines also should be set and included in the loan agreement as well. In order to effectively carry out the terms in the agreement, it is but proper to include the contact information of both the lender and debtor should the need arise to call them out.
Along with the fundamental requirements in the loan agreement, both local and national laws of government applicable in the loan must similarly be included. Likewise, there are loan types that require bank regulations so this should be included in the agreement as well. You will find that there are a lot of other provisions for different types of loans. It is imperative that you know about them and get them included in the agreement. If you are not familiar with the provisions for each different loan, it may be wise to consult legal help.
Commonly, such matters are pertinent to bank loans, lending enterprise, and other similar finance institutions. When it comes to personal loans, it is a different issue and different structure because the loan happens between private folks. Nevertheless, it is in essence a loan agreement if both parties have come to an understanding about it.
When you are considering whether or not to refinance commercial loan agreements,there are two very important words that you must consider: ‘Why’ and ‘How’. You must consider very carefully the reasons why you believe that refinancing would benefit you, and then you must give equally careful thought as to how you will best achieve these objectives.
Let’s first consider the ‘Why’ and the reasons why people generally believe that refinancing a commercial loan will benefit them:
1. Interest rate changes. You might know of another lender offering a lower interest rate, or your commercial loan might be tied into a specific rate while interest rates in general are dropping. In such cases it might be possible to refinance loan agreements with another lender or even renegotiate your loan terms with your existing lender.
2. It may benefit your business to extend the loan period. Increasing the amortization period from 20 to 25 years, can have a significant impact on the repayment amount. Your overall interest payments would be higher, buy your cash flow would be made healthier by reducing your regular payments. In some cases, a business with repayment difficulties can be saved by improving cash flow in this way.
3. Perhaps you can take advantage of the equity on your business or property and cash out to free up your capital. This can offer at least two major benefits, namely enabling you to invest the capital at a good rate of interest or provide you with a cash sum to enable expansion.
4. You may have several commercial loans that could be combined under more favorable terms. Many business owners that refinance commercial loans through combing loans in this way can save a great deal in their monthly repayments, particularly useful in a business that relies in a strong cash flow situation.
Whatever reasons you have for refinancing a commercial loan, doing so must offer you a business benefit. Otherwise there is no logic in doing so. This benefit can be related to improved cash flow, tax benefits or expansion through the acquisition of capital assets such as equipment, increased office space or improved manufacturing facilities.
Now let’s consider ‘How’ you are going to refinance your loan:
You can either refinance your loan with your existing lender or with an alternative. If you can not refinance your loan you might do a commercial loan modification. Many business owners tend to change their lenders for a better deal: a lower interest rate, longer period, reduced debt amount, or eliminate late payments. A commercial loan modification can produce great results for you as well.
It is not easy to negotiate with a large number of lenders for the best deal. and that is where brokers become involved. A good broker will have a large number of lenders on their list and will be able to get the best possible deal for you. No matter how good you think you are you will be wasting your time if you think you can deal with a bank yourself. You can’t. You need the services of an expert to refinance commercial loan agreements or do a commercial loan modification, and a broker will have the proven expertise to do that properly.
There are many people who need money and only few have the resource to find it. Reasons for the need of money may come from family emergencies or the need to expand a business or maybe to start one. For people who cannot fond a resource, they usually resort to loans in the bank or any lending organizations. When planning to have a loan in a bank or a lending organization, you will usually need to sign a loan agreement or contract.
What is a loan agreement or contract?
A loan agreement or contract is a written document that the lender and the debtor sign that binds their agreement in the issues that comes with a loan. The contract will protect both the lender and debtor should any of the two parties cannot come up with the agreement.
The contract discusses in full detail the agreement that both parties have made. But in those agreements, both parties should also put into consideration the standard laws of the government that has already been established. The laws are actually advantageous for both the debtor and the lender. The law works both two ways to protect both parties. They should also comply with the agreements made in the contract to prevent any legal intervention. Because a contract is a legal document, any violation of the contract can result to a case and the contract can also serve as evidence in the court.
Many issues concerning the loan are addressed and defined in the contract. One of these is fee and interest rates applicable so that the final amount associated to the loan can be calculated. The deadline of each payment or the full-payment should also be set on the contract. Agreements on the penalty of the debtor should he/she is unable to pay the amount on the said deadline should also be discussed and defined. The contact details and information of both the lender and debtor should also be included in the contract. And most importantly, the rights and responsibility by both parties should be properly spelled out in the contract. The consequences and the circumstances that are grounds for ending the contract should also be discussed in detail in the contract.
Together with these basic provisions in the contract, the laws set by the national and local government that is applicable in the loan made should also be clearly stated for the benefit of both parties. Other type of loans also include other details that is relevant to the loan like the security and facility details and other procedures like language provisions, waivers and others that are required by the regulations of the bank. Asking for a legal help may be helpful for you to understand the contract better.
The discussed issues are usually applicable in loans made in banks, finance companies and lending organization. In the case of personal loans, where the loan is made between two private individuals, the structure of a loan agreement may vary greatly. The structure may look just like a promissory note or may even just be a verbal agreement. Either way, it is just okay as long as both individuals had an understanding.
If your car insurance is due for renewal and you are considering buying another policy then this article will provide you with important facts that you should know about. Car insurance policies are getting increasingly expensive and you should do all that you can to reduce your costs. How much you have to pay for your car insurance is dictated by a variety of factors as they apply to you and your vehicle.
In this article we will examine coverage limits, your age, gender and marital status, your location and insuring other household members. All of these factors will have a great influence on how much you will have to pay for your policy.
Coverage limits are generally dictated by the price that you are willing to pay for your insurance. A higher level of coverage will generally result in higher premiums. The best way to find a good value policy is to comparison shop. Nowadays it is generally accepted that the best way to do this is by using a car insurance comparison website.
Your age, gender and marital status will have a great effect on the auto insurance rates that you are offered. Insurers rate drivers using a variety of criteria, if you are a young single male driver you will usually have to pay higher rates. If you are a middle-aged female married driver then your rates will be lower. Insurers calculate the best car insurance rates for you by comparing levels of risk. Those groups which are statistically more likely to be involved in an accident have to pay correspondingly higher rates.
Location plays an important part in deciding how much your premiums will cost. Drivers who live in an urban environment will usually pay more than those from a rural area. This is because drivers who live in cities and heavily populated areas are more likely to be involved in an accident, or to have their car stolen or vandalized. Insurers generally offer better rates if you’re able to demonstrate that you keep your vehicle in a garage at night. You may also be able to improve the security arrangements of your automobile by fitting an alarm, immobilizer and steering wheel lock.
Insuring other household members will have an influence on the cost of your policy and the best car insurance rates that you offered. If you have teenage family members living with you and they are added to your policy, then your costs will increase. This may still work out cheaper than if your teenage driver were to have a separate policy in their own name.
In conclusion, there are a variety of different factors which can affect your ability to be offered the best insurance rates. Some of these are coverage limits, how old you are, whether you are male or female and whether you are married or single. Your rates will also be affected by the area where you live and whether other household members are included in your policy.