Credit rating problems – look to friends and family.

These days many people have poor credit ratings. They must look to other loan sources apart from using the normal financial institutions. If you are approached to offer a loan to a person with poor credit, you should draft a loan contract. This type of contract, also called a promissory note, should be used even if you are lending money to your friends or family members. “Putting it in writing,” will help to avoid misunderstandings later.

Many people have never used a loan agreement before and therefore they would require a sample to help them draft their own agreement. The sample can be found on site such as www.One2OneLending.com. One2One’s AgreementBuilder will walk you through the process of creating your document, or their Forms MarketPlace will provide you with a “fill-in-the-blanks document.

A loan agreement is a legally binding document and it requires the inclusion of certain information. Sometimes you have to go to courts to recover your money and the lack of certain information in the agreement can hurt your efforts.

Information that must be included in the sample loan agreement includes the name and address of the lender and the name and address of the borrower. Additional information that is necessary includes the loan terms, the interest rate and the final date when the loan should be repaid. The sample loan document you use may also include other specifics such as collateral used to secure the loan, late fees, grace periods and steps that will be taken should the borrower default on payments. When downloading sample loan agreements from One2One Lending it is important to find the document that reflects your type of loan. Again, The AgreementBuilder and Forms MarketPlace will help you in this process.