A credit agreement is more comprehensive than a debt instrument and contains clauses about the entire agreement, additional expenses and the modification process (i.e.: How to change the terms of the agreement). Use a credit agreement for high-rise loans or loans from multiple lenders. Use a debt account for loans that come from non-traditional lenders such as individuals or businesses instead of banks or credit unions. Acceleration – A clause in a loan agreement that protects the lender by requiring the borrower to immediately repay the loan (both the principal and all accrued interest) if certain conditions occur. A credit agreement is a legal agreement between a lender and a borrower that defines the terms of a loan. Depending on the credit selected, one must draw up a legal contract that states the terms of the loan agreement, including: relying solely on an oral promise is often a recipe for a person to get the short end of the key. When repayment terms are complex, a written agreement allows both parties to clearly specify the terms of payment in instalments and the exact amount of interest due. If a party does not fulfill its part of the agreement, this written agreement has the added benefit of having recalled the understanding that both parties have consequences. Lending money to family and friends – when it comes to loans, most refer to loans to banks, credit unions, mortgages and financial aid, but hardly do people consider getting a credit agreement for their friends and family, because that`s exactly what they are – friends and family. In any case, each credit agreement must be signed in writing by both parties. While loans can occur between family members – what`s called a family credit agreement – this form can also be used between two organizations or entities that have a business relationship. .