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Keeping Your Business Out Of Trouble And On Track
Pupil admission as
Advocates and Solicitors
of High Court of Malaya.
MBO Cinemas Galaxy Ampang
Mesyuarat Agung Permulaan Koperasi Ibnu Khalid Kuala Lumpur Berhad
Location : Cubic World@Plaza 41, Level 3 (1st Floor), Pusat Beli-Belah Pandan Kapital
Need Money Help?
|Our current way of life, it is almost impossible not to have
clean record of not borrowing. Borrowing in the wider
sense of taking loan from another person either natural
person or corporation licence to lend money.|
Taking loan is not an easy decision. One has to balance one’s needs against ability to repay. It is neither easy for the lender to part with his money unless there is very high certainty for the borrower to return the money. As risks are high for both parties, it has now become almost improbable not to put the transaction in writing with all the terms attached to it.
A Loan Agreement is a contract between a borrower and a lender which regulates the mutual promises made by each party. It defines the terms of a loan which is repayable with interest over a fixed term (Conventional Loan).
Prior to entering into a loan agreement, the potential borrower first makes representations about his affairs surrounding his character, creditworthiness, cash flow, and any collateral that he may have available to pledge as security for a loan. These representations are taken into consideration and the lender then determines under what conditions, if any, they are prepared to advance money.
|We have always been under the impressions that only the
lender has to worry of borrower’s payment ability. Mind
you, borrower has also to be mindful of which lenders to
be selected. The normal feature a borrower has to look
for in a lender is the interest charge. Of course lowest
interest in town is the most preferred. With stiff competitions
in the lending business, lenders also offer flexi
payment which indeed if selected properly would offer
some benefit to the borrower. On top of that, prepayment
term is also one of important item to consider.|
It is not unusual especially for business owners to obtain loan on a short period thus the prepayment term or early settlement term is very crucial in order to avoid paying higher penalty.
In case of uncertainty, you, as the potential borrower may also consult your solicitors’ opinion on the loan terms. Seek help and your solicitors will be more than willing to help you get connected to the right lenders.