Uploaded by: Victoria Person at February 13 2018 20:03:24.
An inter-company loan agreement allows two child entities to borrow and loan funds from each other that have the same parent company. The loans are usually favorable to one-side in order to help with cash reserves or help make an investment whereas the other child entity lacks the finances to do.
The loan agreement will typically have detailed information about the borrower, including their personal information, creditworthiness, income, and expenses. This information is required in order for the lender to determine if they are willing to proceed with the transaction.
While these may not be things that lenders want to consider when loaning to someone they trust, it is important to protect both parties when lending money. If the person borrowing the money will not be able to pay it back for several months, they might feel more comfortable with the protection of a loan agreement template that states that prior to the exchange of funds. Filling out and signing a free loan agreement template takes very little time and effort, but can prevent many legal and personal problems later on.
An employee loan agreement template is a document that describes a debt that is to be paid from an employee to a company that loaned the sum of money. The debt is usually paid back via future paychecks so there is usually little or no interest or fees that is taken from the amount. Once both parties authorize the agreement it should be held for each party’s record-keeping.
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