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A Payment Agreement is an outline of the important terms and conditions of a loan. Payment periods, amounts, and interest rates can all be critical to the loan agreement and it's probably best to document all those elements in writing. If you're borrowing or lending money, a Payment Agreement serves as your detailed receipt of the loan.
Whenever money is being loaned, a Payment Agreement is a good first step. Loans can contain a lot of information, but there's no reason why they can't be simple. Having all the details organized in one place can help avoid confusion and future complications. Agreements can fall apart, so when your money is involved you should take care to ensure you're protected. Whether you're the borrower or the lender, having everything clearly documented in writing can give you the extra assurance you need. Getting a Payment Agreement drafted is a great foundation for a smooth loan.
Other names for this document: Loan payment Agreement, Payment Plan Agreement, Installment Agreement
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