A Credit Agreement is a legally binding document between two parties that outlines the terms and conditions of a loan or a line of credit. It defines the type of credit, the amount and the duration of the loan, any required collateral, interest rate, repayment schedule, fees, and penalties for non-payment or late payment. This agreement sets out all the rights and obligations of both parties, helping to ensure that payments are made on time and in accordance with the terms of the agreement. When signing a Credit Agreement, it’s important to read the details carefully and understand your legal rights and responsibilities before agreeing.