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Business Loan Agreement

Free business loan agreement template for a term loan between a lender and a business borrower, with a fixed repayment schedule.

This free business loan agreement covers 1. Loan Amount, 2. Interest Rate, 3. Repayment Schedule, 4. Guaranty (if applicable), 5. Collateral (if applicable) with 11 clearly marked [placeholder] fields to fill in — built for small businesses and individuals documenting a loan or expense putting financial terms in writing so both sides have a clear, shared record. Copy it into your own word processor, fill in the placeholders, and review it — or adapt it — before use. It's part of docstoc's free document template library, alongside business, legal, real estate, finance, and HR templates. Every template here is free to copy with no signup required, and each one carries a plain disclaimer: this is a starting point for informational purposes, not a substitute for advice from a licensed professional in your jurisdiction.

Template — click to edit

Business Loan Agreement

Lender: [Name] · Borrower: [Business Name] · Date: [Date]

1. Loan Amount

Lender agrees to loan Borrower the principal sum of [Amount], to be used for [Purpose, e.g. working capital, equipment purchase].

2. Interest Rate

Interest accrues at [Rate]% per annum, [fixed/variable], calculated on the outstanding principal balance.

3. Repayment Schedule

Borrower will repay the loan in [Number] equal monthly installments of [Amount], beginning [Date], with the final payment due [Date].

4. Guaranty (if applicable)

[Name of Guarantor] personally guarantees repayment of this loan, per a separate guaranty agreement.

5. Collateral (if applicable)

This loan is secured by [Description of collateral], per a separate security agreement.

6. Prepayment

Borrower may prepay this loan in whole or in part at any time [without penalty / subject to a prepayment fee of [Amount/%]].

7. Default

Borrower is in default upon failure to make a payment within [Number] days of its due date, insolvency, or breach of any covenant in this Agreement. Upon default, the entire unpaid balance becomes immediately due at Lender's option.

8. Financial Covenants (if applicable)

[Any ongoing financial requirements — e.g. minimum debt-to-equity ratio, periodic financial statement delivery.]


Lender: ______________________ Date: ____________ Borrower: ______________________ Date: ____________

*This document is provided for informational and educational purposes only and does not constitute legal advice. A business lender making loans as a regular practice may need a state lending license — confirm licensing requirements before extending credit to businesses on a recurring basis.*

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What's included

Who this template is for

Freelancers & solo founders

Handling routine business paperwork without commissioning custom legal drafting for every document.

Small businesses

Standardizing recurring documents — leases, agreements, notices — across a growing operation.

Anyone reviewing before signing

Using a clear starting structure to understand what a document should cover, even if a lawyer finalizes it.

Informal lending & reimbursements

Money changing hands between people or a business and its team, without a bank's paperwork.

FAQ

Is this business loan agreement template really free?

Yes — this Business Loan Agreement template on docstoc is free to view, edit online, and download as a PDF with no account or signup required.

What does this business loan agreement cover?

This finance template includes 1. Loan Amount, 2. Interest Rate, 3. Repayment Schedule, 4. Guaranty (if applicable). Fill in the [bracketed] placeholders, edit any clause online, then download a PDF — the docstoc.io footer stays on every export.

Is this legal advice?

No. This covers the standard structure, not the interest-rate limits, disclosure requirements, or tax implications that can apply depending on your state and the amount involved. Check those specifics with an accountant or financial attorney before you rely on it.

Can I edit the wording?

Yes. All 11 placeholder fields and every clause are editable right on the page — change what doesn't fit, then download an updated PDF anytime.

Where can I find more free templates like this?

Browse more free finance and related document templates in the docstoc library at /document-templates/.

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