There are a few reasons why you want to register as a junior creditor. You may have lent money to a friend to start your business. Now they need more money than you can afford. You can trick a priority creditor into lending them money if you agree to be a junior creditor. If this happens, all credit repayments are made first to the priority creditor. Or maybe you want to be the ultimate creditor. And you want to make sure you get a refund first. What if you need a loan? The creditor may want a written promise that they are your top priority – and they will be paid first. Think carefully before having younger, priority creditors. Once you know your best step, a subordinated loan agreement will help you make it legal. If a lender wants to sell your credit to another lender, they need a subordinated credit contract to spell the terms. Or if you are a junior creditor who wants to induce a priority creditor to lend to a particular borrower, a subordinated credit contract could help, for example, by promising them the first dibs in the event of repayment.
Are you ready to enter into your free subordinated loan agreement? Our step-by-step interview process is not only a model, but also the creation of a subordinated credit contract. Save, sign, print and download the document when you`re done. Your document is free as part of your week-long membership test. “Rocket Lawyer is a useful tool for professionals who need affordable legal documents.” Our step-by-step interview process makes it easy to create a sub-ordinated loan agreement that can be printed.