Business agreement is a negotiated & most of the times a lawfully enforceable understanding between 2 or more than 2 legally competent parties. Though a binding contract results from an agreement, but an agreement documents give & take of negotiated settlement & a contract specifies minimum acceptable performance standard.

Business agreements have neither any limits nor any set formats. They are a set of legally binding considerations and conditions which are needed to be held for the successful setup of the business.

In this article, different loan agreements and security agreements are discussed.

Categories of Loan Agreements

Loan agreements are categorized as follows:

1. Agreement for Direct Payment of Taxes, Insurance and/or Assessments & Waiver to Escrow to be held by the Lender
2. Loan Agreement between Corporation & Stockholder – Internal Revenue Service (IRS) expects that for any loan made to Corporation to be correctly recorded on the Corporation’s Balance Sheet as a Liability under the section Loans from Shareholders/Officers. The loan should be accompanied by formal rate of interest, and the loan period should also be specified along with monthly repayment amount.
Extension of Loan Agreement Secured by a Deed of Trust as to Maturity Date & Increase in Interest Rate

Categories of Security Agreements

Security agreements are categorized as follows:

1. Letter for Loan
2. Letter for Reinstatement of Loan
3. Pledge of Stock for Loan
4. Letter for Payoff of Loan held by Mortgage Company
5. Assignment of Business License as Security for a Loan
6. Pledge of Personal Property as Collateral Security
7. Security Agreement in Contract Rights & Accounts
8. Estoppels Affidavit of Mortgagor
9. Installment Payment & Purchase Agreement
10. Notice of Default under Security Agreement
11. Checklist for Business Loans Secured by Real Estate

The above given are the most commonly used loan agreements and security agreements. At, one can find business agreement template for any of these agreement types. The templates make it easy for the users to right business agreements, and also make sure that the agreements are well-written, have proper English, spellings and grammar. By using templates, the user cannot even forget to write important points in any of the business agreements.

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