Are you preparing a loan agreement between you and a family member, friend or business partner? The number 1 source of funds is friends and family, leverage your friends and family utilizing the Kasu.ca platform that helps you document your loan.
When considering a loan, there are many variables you should consider.
The following are important phrases to know:
Who is the Borrower in the document, which is the person or business that is receiving the funds from the source or “lender”. The nature of the agreement is clearly that the Borrower will pay back the loan to the Lender, the principal amount plus interest. In the event that you use a service like Kasu.ca, the documents are based on Canadian Law. Often parties select jurisdiction based on where the Lender resides. The benefit of using a document creator is the calculator for amortization of the loan. Generally you enter the principal amount, the original amount loaned at the date the funds where received, the desired interest rate, term, and voila, the calculator builds the payment schedule. After entering the details, a payment grid is inserted directly into the document.
In addition, Kasu.ca also incorporates a Notary page. In general, there is no requirement for a witness or notary to witness the signing of a loan document, however, this depends on jurisdiction. Even if it is not required, it is often just good practice to have a Notary or Witness verify the agreement, especially if it is a loan you feel may need enforcement for repayment.
Kasu, a friends and family platform that helps you document your loan!