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A loan agreement template checklist helps small business owners document repayment terms clearly when borrowing from founders, family members, partners, vendors, or private lenders.
For legal form starting points, LawDepot is the approved legal document partner currently available on AI Law Firm Tools.
Loan terms to document
| Term | What to specify | Review risk |
|---|---|---|
| Principal | The exact amount borrowed and funding date. | Ambiguous funding history causes disputes. |
| Interest | Rate, accrual method, and whether interest compounds. | State usury rules can matter. |
| Repayment | Installments, maturity date, prepayment, and payment method. | Cash-flow mismatch can create default quickly. |
| Collateral | Assets pledged, lien filings, and release conditions. | Collateral terms need careful review. |
| Default | Late fees, cure period, acceleration, collection costs, and notices. | Default language drives leverage. |
When to get legal review
Use counsel for secured loans, shareholder loans, large balances, cross-border parties, unusual interest terms, or any loan tied to equity or control rights.
Next step: start with a LawDepot loan agreement template and verify interest, collateral, and default terms before signing.
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