Business Loan Agreement Template
A business loan agreement records a loan between a lender and a business borrower — the amount, interest, repayment plan and what happens if things go wrong.
What this business loan agreement covers
- The loan amount and purpose
- Interest rate and calculation
- The repayment plan
- Whether the loan is secured or guaranteed
- What happens on default
When you need a business loan agreement
- Lending money to a company, e.g. a director or investor loan
- Borrowing between related businesses
- Any business loan where terms should be clear and enforceable
The legal framework
Understanding the law behind a business loan agreement helps you use it well. Here is the key UK legislation that applies:
Frequently asked questions
Do I need to register a business loan anywhere?
Only if it's secured — a registrable charge over company assets generally needs to be filed at Companies House within 21 days. An unsecured loan doesn't need registering.
Can a business loan be interest-free?
Yes, though most commercial loan agreements do charge interest. Loans between connected companies or to directors can have tax implications — worth checking with an accountant regardless of the interest rate chosen.
How Legal Lift helps
Answer a few plain-English questions and our AI generator produces a tailored business loan agreement, ready to edit, download as PDF or Word. Every template is kept current with UK law, and our SRA-regulated solicitor partners are available if you'd like it reviewed — especially for secured loans.