Formalising Your Person To Person Loans
Overview
Today we are going to discuss one of our Loan Agreements, in particular, our Person to Person Loan Agreements.
Now our Person-to-Person Loan Agreement is exactly that, it’s a loan agreement between individuals where one individual provides a loan to another individual.
These Loan Agreements are generally simple loan agreements between family members in Australia or for that matter anywhere in the world. It doesn’t really require a security interest to be registered on the PPSR or Personal Property Securities Register because quite often it is for a smaller amount and is quite often a simple loan agreement between friends or a loan agreement between family members. If the required loan is for a larger amount, then it is generally going to be more of an investment loan or financing agreement which would be better suited to one of our other Loan Agreements.
This particular Loan Agreement is just a Person-to-Person Loan Agreement or a simple loan agreement between family members or friends where you want to have something in place just to formalise the loan agreement and possibly, build in a direct debit facility for loan repayments, and possibly build in some consequences in case there is a default in the Loan Agreement.