Business & contracts 2 signers 2 pages 24 blanks to fill in

Business Loan Agreement Template

Put a loan to your business on a proper footing: how much, at what rate, paid back how, and what happens if it goes wrong.

Use this template — free See the agreement Signers don’t need an account
Business loan agreement
The blanks in brackets are what you fill in. FileIt adds each signer’s signature and date boxes.
Business loan agreement — page 1 of 2
Page 1 of 2
Business loan agreement — page 2 of 2
Page 2 of 2
Use this template Fill in the blanks, name who signs, and send — from FileIt eSignature.

What is a business loan agreement?

Not every business loan comes from a bank. Owners borrow from private lenders, family investors, suppliers, other businesses and former partners, and those loans need the same clarity a bank would insist on. Without a written agreement it is hard to prove the terms, and easy for a dispute to start the first time a payment is late.

This template sets out the amount, drawdown date and purpose, a fixed rate or a variable margin over a reference rate, late-payment interest, and repayment by equal instalments, interest-only with a final balloon, or a single payment. You choose the early repayment terms, whether the loan is unsecured or secured over listed assets, and whether a guarantor will sign a separate guarantee. It includes conditions before money is paid out, the borrower's ongoing promises, such as sending accounts and not selling the business without consent, a list of events of default, and the lender's right to call the loan in early.

Best for
Private, family, investor or business-to-business loans to a company, partnership or sole trader
Signed by
The lender and the borrower
Repayment options
Monthly instalments, interest-only with a final payment, or a single payment
Length
About 3 pages, initialled on every page

When to use a business loan agreement

  • A private investor lends to a growing restaurant group for a new site
  • A supplier lends to a key customer to fund equipment
  • A family member lends to a family business on commercial terms
  • One company lends to another in the same group
  • Refinancing an informal loan on clear written terms

What you fill in

24 blanks, then the name and email of each person who signs: lender, borrower.

1 The parties

  • Date of this agreement*
  • Lender*
  • Lender address
  • Borrower (business name)*
  • Borrower address

2 The loan

  • Currency*
  • Loan amount*
  • Date the money is paid to the Borrower*
  • Purpose of the loan*

3 Interest and repayment

  • Interest rate (% a year)*
  • Rate is* fixed for the life of the loan · variable, set at the margin below over the reference rate
  • Reference rate (variable loans)
  • Repayment* equal monthly instalments of principal and interest · monthly payments of interest only, with the principal repaid in full on the final repayment date · one payment of principal and interest on the final repayment date
  • Monthly payment
  • First payment due
  • Final repayment date*
  • Early repayment* allowed at any time without a fee · allowed with 30 days' notice and a fee of 1% of the amount repaid early · allowed only after the first 12 months, without a fee
  • Extra interest on late payments (% a year)*

4 Security and guarantee

  • Security* Unsecured · Secured over the assets described below
  • Assets given as security
  • Guarantee* No guarantee · A personal or company guarantee from the person named below
  • Guarantor

5 Other terms

  • Borrower sends annual accounts within (days of year end)*
  • Governing law*

6 Who signs

  • Lender signature and date, job title, initials on every page · The person or business lending the money. A business lender's signatory adds their title.
  • Borrower signature and date, job title, initials on every page · A director, partner or owner authorised to borrow for the business.

What the business loan agreement covers

  1. The loan
  2. Interest
  3. Repayment
  4. Security and guarantee
  5. The Borrower's promises
  6. Events of default
  7. General

Using the business loan agreement, step by step

1 Name the lender and the borrower

Enter both parties and their addresses. A business lender or borrower adds the signatory's title.

2 Set the loan

Enter the currency, amount, drawdown date and what the money is for.

3 Choose interest and repayment

Pick a fixed or variable rate, the repayment pattern, the monthly payment and first due date if fixed, the final repayment date, early repayment terms and late interest.

4 Add security and a guarantee

Say whether the loan is unsecured or secured over assets you list, and whether a guarantor will sign a separate guarantee.

5 Sign it

Send it for signature. The signed loan agreement is filed in your vault, alongside any security document and guarantee.

Tips before you send it

  • Security over assets usually needs its own document, and often registration, to work against other creditors. Ask a lawyer.
  • A guarantor signs their own guarantee, ideally after independent advice. FileIt has a personal guarantee template for that.
  • Lending can be regulated, especially to sole traders or on a regular basis. Check whether you need a licence.
  • Match the instalment figure to a proper repayment calculation so the loan is fully paid by the final date.

Sign it online in minutes

  1. Fill in the blanks. Names, dates and amounts go straight into the agreement — the preview shows exactly where.
  2. Name who signs. Tick “This is me” for your own part. FileIt builds the PDF with every signature, date and initials box on the right line, and you can check or move anything before sending.
  3. Send it. Each signer gets a secure link and signs from any device — no account needed. The signed PDF, with an audit trail and a Certificate of Completion, is filed in your vault and emailed to everyone.
Use the business loan agreement template — it’s free

Business loan agreement: frequently asked questions

Can a guarantor sign this agreement?

A guarantor signs a separate guarantee rather than this agreement, so their obligations are set out clearly and they can take advice on them. Choose the guarantee option and name the guarantor here.

What counts as an event of default?

Missed payments not made within 10 days, unremedied breaches, untrue statements made to get the loan, insolvency or stopping trading, and a guarantee or security failing. After one, the lender can call in the whole loan.

Can the borrower repay early?

You choose: early repayment at any time without a fee, with notice and a 1% fee, or only after the first 12 months.

Is this suitable for a consumer loan?

No. It is for lending to a business. Loans to individuals for personal use are covered by consumer credit rules in most places and need different wording.

Can both parties sign online?

Yes. FileIt sends each signer a secure link and adds an audit trail and Certificate of Completion to the signed PDF.

Use this template — free