Entrepreneurship & Small Business

Do I need a lawyer to make Loan Agreement ?

  • Last Updated:
  • Aug 8th, 2018 10:37 am
[OP]
Sr. Member
User avatar
Oct 19, 2016
616 posts
191 upvotes
Toronto

Do I need a lawyer to make Loan Agreement ?

Im trying to get a Loan from a relative overseas. Can we draft the Loan Agreement on our own ?

Has anyone any experience in this ?
2 replies
Deal Guru
Aug 2, 2010
12510 posts
3062 upvotes
Here 'n There
Sure you can. Just google for some standard forms. The problem for your relative is most people don't pay back loans and come up with every excuse under the sun why they are justified not paying it back ever or delaying payment ad infinitum. I stopped lending money to people when it happened to me a few times from so called 'best friends'.
Deal Addict
Jul 3, 2017
2551 posts
1710 upvotes
The last time we used our law firm to create a loan agreement, they delivered about a 15 page agreement document, mostly boilerplate, based on our one-paragraph summary of the loan terms. Since then we've discovered a couple of important ambiguities and one outright conflict in the material they added, where our original paragraph was completely clear.

So don't expect much value added from the lawyers, especially since you'll have to spend a lot of time double-checking their work.

Definitely review a standard loan agreement to make sure you have covered all the bases. Think through the various possible circumstances to make sure you have taken them into account. Make sure your wording is clear to everyone involved.

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