One contract that you will need to have a working knowledge of is a construction loan agreement. Let's take a look at what a construction loan agreement is and why having one is so important.
A loan agreement is a contract between a borrower and a lender which regulates the mutual promises made by each party. There are many types of loan agreements, including "facilities agreements," "revolvers," "term loans," "working capital loans." Loan agreements are documented via a compilation of the various mutual promises made by the involved parties.
The interest rate for these types of loans is plus 1 percent of prime and is adjusted monthly. For these types of loans, borrowers are completely responsible for all third party costs and points can be bought with these types of loans to keep long term costs down.
Deferred payments are usually placed at the end of the loan and payment terms extended. The type of loan is a contributing factor as to how many payments can be skipped. On average, lenders allow borrowers two to three months to resolve financial setbacks.