Written by Super User on 30 September 2021.
Today we are going to discuss one of our Loan Agreements, in particular, our Person to Person Loan Agreements.
Now our Person-to-Person Loan Agreement is exactly that, it's a loan agreement between individuals where one individual provides a loan to another individual.
These Loan Agreements are generally simple loan agreements between family members in Australia or for that matter anywhere in the world. It doesn't really require a security interest to be registered on the PPSR or Personal Property Securities Register because quite often it is for a smaller amount and is quite often a simple loan agreement between friends or a loan agreement between family members. If the required loan is for a larger amount, then it is generally going to be more of an investment loan or financing agreement which would be better suited to one of our other Loan Agreements.
This particular Loan Agreement is just a Person-to-Person Loan Agreement or a simple loan agreement between family members or friends where you want to have something in place just to formalise the loan agreement and possibly, build in a direct debit facility for loan repayments, and possibly build in some consequences in case there is a default in the Loan Agreement.
When it comes to setting up our simple Loan Agreement on your behalf the process is straightforward. But as you can appreciate there are several variables, the first of which would be the entities involved. Whether the parties involved are Individuals, businesses, companies or trusts, we need to ensure we have the right parties.
The second would be the Interest Rate, whether you are going to charge an interest rate, what that Interest rate might be, or even if you are going to charge interest at all. You might elect just to charge a flat fee. It’s totally up to you.
Another variable would be the costs, including the costs into the loan agreement. So rather than having the borrower pay the costs upfront, you can decide to incorporate the costs into the loan and have the payments spread out over the life of the loan. You can also decide if you want to incorporate a balloon payment into the end of the loan thereby reducing the monthly loan repayments. It is totally up to you.
You can also sign the Loan Agreement using Electronic Signatures making the loan very easy to implement using smartphones or tablets.
Having your very own Personal Loan Dashboard provides access to your loan agreement, which you can log into at any time, available 24/7. This is where you can view the loan repayments, you can see which payments have been made and which are still outstanding. You even receive automatic notifications of any defaults in loan payments by the borrower. Your Personal Loan Dashboard is the centrepiece of your loan management functionality with various other options available.
Direct Debits or direct debiting the loan repayments from the borrower’s bank account is a great way of trying to ensure the loan payments progress smoothly over the period of the loan and helps eliminate defaults in loan repayments which can be debited on a weekly, fortnightly, or monthly basis.
Your Personal Loan Dashboard is where you can adjust your Loan, you can adjust the loan amount, you can adjust the loan period, you can even top up the loan. You simply renegotiate the loan with the borrower. You might decide to extend the period which you can do through your Personal Loan Dashboard, a new loan would just automatically start. You can even defer payments and add additional payment onto the end of the loan, you can even forgive or cancel the loan. It is totally up to you.
So having your own Personal Loan Dashboard provides complete flexibility not available anywhere else.
If you would like to know more about "How You Can Personalise Your Loans Agreements to Family or Friends" please feel free to request our FREE Facts Sheet here.
That’s It From Me, Until Next Time
Have a Great Day
With over 35 years’ experience Collection Consultancy Australia prides itself in offering Products and Services designed to Protect Business Assets and Cashflow. Quite often the process can start from simply making business owners aware that there is option available, through to business specific solutions and education. We are here to let business owners know that there can be a better way to secure their financial future.
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