The Credit Agreement
Neither a borrower nor a lender be;For loan oft loses both itself and friend,Hamlet Act I, Scene 3
Even Shakespeare understood the risk of making a loan. Not only can the loan be lost, but the cordial business relationship between the parties can be harmed along the way. There is no sure antidote to this hazard, but a clearly drafted agreement between borrower and lender that defines for each what to do and not to do certainly helps.
The credit agreement (also commonly referred to as a loan agreement) is but one of many genres of agreement under which a business can obtain borrowed funds. Other examples include agreements for the issuance of senior or subordinated debt securities in the public markets, private placement ...