LOAN AGREEMENT FOR BUSINESS OPERATIONS

           LOAN AGREEMENT FOR BUSINESS OPERATIONS

THIS AGREEMENT is hereby entered into on this ………………day of …….……………. Two Thousand and ……………………………

BETWEEN

  1. [Your Name], with an address at [Your Address], hereinafter referred to as the (“Borrower”)

                                                          AND

  1. [Investor’s Name], with an address at [Investor’s Address], hereinafter referred to as the (“Lender”) collectively referred to as the (“Parties”).

RECITALS;

WHEREAS, the Borrower operates in the fields of real estate, commercial lending, and consulting and requires financial assistance to support its business operations;

WHEREAS, the Lender is willing to provide a personal loan to the Borrower in accordance with the terms and conditions set forth in this Agreement;

WHEREAS, the Borrower and the Lender desire to formalize their understanding and obligations regarding the loan through a written agreement;

NOW, THEREFORE, in consideration of the mutual promises and covenants contained herein, and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Parties hereby agree as follows:

  1. LOAN AMOUNT:

The Lender agrees to provide a personal loan in the amount of [Loan Amount in Words] ($[Loan Amount in Numbers]) to the Borrower, subject to the terms and conditions set forth in this Agreement.

 

The loan funds shall be disbursed to the Borrower’s designated bank account or via PayPal, Venmo, or Zelle, as specified below:

Bank Transfer:

Bank Name: [Bank Name]

Account Name: [Account Name]

Account Number: [Account Number]

Routing Number: [Routing Number]

PayPal:

PayPal Email: [PayPal Email Address]

Venmo:

Venmo Username: [Venmo Username]

Zelle:

Zelle Email or Mobile Number: [Zelle Email or Mobile Number]

The lender agrees to disburse the loan amount to the borrower’s designated account or chosen payment platform within [specify timeframe] upon the execution of this agreement.

  1. PURPOSE:

The Borrower shall utilize the loan funds solely for business operations related to real estate, commercial lending, and consulting, as described in the Borrower’s business plan attached as Exhibit A.

  1. INTEREST RATE:

The loan shall bear an interest rate of [Interest Rate] % per annum, calculated on the outstanding principal balance. The interest shall be compounded annually and shall accrue from the date of disbursement until the loan is fully repaid. Any changes to the interest rate during the term of this Agreement shall be mutually agreed upon in writing.

  1. REPAYMENT TERMS:

The loan shall be repaid in [Number of Installments] equal monthly installments of $[Monthly Installment Amount], starting from [Start Date]. The final installment shall be adjusted for any remaining outstanding balance.

The Borrower shall make the payments by the [Payment Method] to the Lender’s designated bank account mentioned above or via Zelle, PayPal, or Venmo, as specified below:

Bank Transfer:

Bank Name: [Bank Name]

Account Name: [Account Name]

Account Number: [Account Number]

Routing Number: [Routing Number]

Zelle:

Zelle Email or Mobile Number: [Zelle Email or Mobile Number]

PayPal:

PayPal Email: [PayPal Email Address]

Venmo:

Venmo Username: [Venmo Username]

The Borrower shall ensure that each payment is received by the Lender no later than [Payment Due Date]. It is understood that the initial loan funds were received by the Lender through the designated bank account, Zelle, PayPal, or Venmo, as agreed upon between the parties.

  1. REPAYMENT OPTIONS AND PREPAYMENT:
  2. a) Early Repayment or Accelerated Repayment:

The Borrower may, at its discretion, choose to make early or accelerated repayments on the loan. Early or accelerated repayments may include additional principal payments, lump sum payments, or larger-than-scheduled installment payments.

If the Borrower intends to make an early or accelerated repayment, the Borrower shall provide written notice to the Lender at least [Notice Period] days prior to the intended repayment date. The notice shall specify the amount and nature of the early or accelerated repayment.

Upon receipt of the notice, the Lender shall provide the Borrower with an updated loan statement reflecting the remaining principal balance and any adjusted interest resulting from the early or accelerated repayment. The updated statement will clearly indicate that the Lender will receive the full interest amount as agreed upon in the original loan agreement, even if the loan is paid off before the scheduled term.

Following the early or accelerated repayment, the monthly installment amount and payment due dates may be adjusted accordingly, taking into consideration the reduced principal balance. However, it is understood that the Lender’s total interest earnings over the lifetime of the deal, will be paid in full by the Borrower, irrespective of the early repayment date.

  1. b) Prepayment:

The Borrower shall have the right to prepay the outstanding loan balance in full or in part at any time without any penalty or additional charges. Prepayments shall be applied first to any outstanding interest and then to the principal balance.

In the event of a prepayment, the Borrower shall provide written notice to the Lender at least [Prepayment Notice Period] days prior to the intended prepayment date.

The Lender shall provide the Borrower with an updated loan statement reflecting the remaining principal balance and any adjusted interest within [Prepayment Statement Period] days of receiving the prepayment notice.

Upon receipt of the prepayment notice, the Lender shall provide the Borrower with the necessary instructions to facilitate the prepayment, including the designated bank account details for the repayment.

Following the prepayment, the monthly installment amount and payment due dates shall be adjusted accordingly, taking into consideration the remaining principal balance.

  1. DEFAULT AND REMEDIES:

In the event of default by the Borrower, including but not limited to non-payment or breach of any provision of this Agreement, the Lender shall have the right to declare the entire outstanding loan balance immediately due and payable.

In the event of default, the lender may exercise remedies available by law, including but not limited to acceleration of the loan, collection costs, and legal actions.

The Borrower shall be responsible for any costs, expenses, or reasonable attorney fees incurred by the Lender in connection with the enforcement or collection of the loan, including but not limited to court proceedings.

  1. REPRESENTATIONS AND WARRANTIES:

Borrower’s Representations:

The borrower represents that they have the authority to enter into this loan agreement and perform the obligations stated herein.

The borrower represents that all information provided regarding the business is true, accurate, and complete.

Lender’s Representations:

The lender represents that they have the necessary authority to lend the funds specified in this agreement.

The lender represents that they are not aware of any legal obstacles that would prevent them from providing the loan.

  1. CONFIDENTIALITY CLAUSE:

Both parties agree to keep any confidential information exchanged during the course of this loan agreement strictly confidential. Confidential information may include, but is not limited to, financial records, business plans, customer lists, trade secrets, and any other proprietary information related to the Borrower’s real estate, commercial lending, and consulting operations.

The parties shall not disclose or use any confidential information for any purpose other than the performance of their obligations under this loan agreement, unless required by law or with the prior written consent of the disclosing party. This confidentiality obligation shall survive the termination or expiration of this loan agreement.

  1. TERMINATION:

This loan agreement shall remain in full force and effect until the Borrower has fully repaid the loan amount, including any accrued interest and applicable fees. Upon complete repayment, the loan agreement shall be considered terminated.

In the event of a default or failure to repay the loan amount as per the agreed-upon terms and schedule, the Lender shall have the right to pursue all available legal remedies, including but not limited to acceleration of the loan and seeking immediate repayment.

Notwithstanding any other provisions of this agreement, the Lender reserves the right to terminate this loan agreement if the Borrower breaches any material terms or obligations under this agreement or if there is a substantial change in the Borrower’s financial condition that, in the Lender’s reasonable judgment, affects the Borrower’s ability to repay the loan.

Upon termination, all outstanding amounts under this loan agreement shall become immediately due and payable.

  1. GOVERNING LAW:

This Agreement shall be governed by and construed in accordance with the laws of the State of New Jersey. Any disputes arising out of or in connection with this Agreement shall be submitted to the exclusive jurisdiction of the courts in New Jersey.

  1. DISPUTE RESOLUTION:

Any disputes arising out of or relating to this Agreement shall be resolved through binding arbitration in accordance with the rules and procedures of a recognized arbitration institution, such as the American Arbitration Association (AAA). The arbitration shall be conducted by a single arbitrator appointed by mutual agreement or by the chosen arbitration institution. The arbitrator’s decision shall be final and binding, and judgment on the arbitration award may be entered in any court with jurisdiction.

  1. ENTIRE AGREEMENT:

This Agreement constitutes the entire understanding between the Parties and supersedes any prior agreements or understandings, whether written or oral, relating to the subject matter hereof. No modification, amendment, or waiver of any provision of this Agreement shall be effective unless in writing and signed by both Parties.

  1. SEVERABILITY:

If any provision of this Agreement is found to be invalid, illegal, or unenforceable, the remaining provisions shall continue in full force and effect.

  1. AMENDMENTS:

Any amendments or modifications to this Agreement shall be made in writing and signed by both Parties.

IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first above written.

 

 

BORROWER                                                            LENDER

NAME:                                                                     NAME:

_________________________                     _________________________

SIGNATURE:                                                    SIGNATURE:

_________________________                     _________________________

 

DATE:                                                            DATE:

_________________________                     _________________________

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