Set up your document

WHEREAS the undersigned desires to set out in writing the matters described below;

WHEREAS this document has been prepared with reference to the laws of Ontario, Canada;

NOW, THEREFORE, the following provisions shall apply:

October 23, 2026

Lender: Jordan Miller

Borrower: Example Café Partnership

In plain language: Jordan Miller lends $25,000 to Example Café Partnership, who agrees to pay it back with interest on the schedule below. Unlike a simple promissory note, this agreement also covers collateral, a guarantor, and what happens on default — both parties sign it.

The Lender agrees to lend the Borrower $25,000 (the "Principal"), advanced on 2026-11-01 (the "Start Date"). The Borrower acknowledges receipt of the Principal.

Interest accrues on the outstanding Principal at 6% per annum, calculated monthly and not in advance.

The term runs from the Start Date to the Maturity Date of 2028-11-01.

The Borrower will repay the Principal in equal monthly instalments of principal and interest, with the first instalment due one month after the Start Date and any remaining balance due in full on the Maturity Date (2028-11-01). Each instalment is due on the same calendar day each month.

The Borrower may prepay any part of the Principal at any time without penalty; prepaid amounts reduce the outstanding Principal and interest accrues only on what remains.

As security for this loan, the Borrower grants the Lender a security interest in the following collateral: The 2021 Honda Civic, VIN 2HGFC2F59MH12345 (example). The Borrower will not sell or encumber the collateral without the Lender's written consent until the loan is repaid in full. On default, the Lender may enforce its security as permitted by the applicable personal property security legislation of Ontario.

Taylor Brooks (the "Guarantor") unconditionally guarantees the Borrower's obligations under this agreement. If the Borrower defaults, the Lender may demand payment directly from the Guarantor without first pursuing the Borrower.

If any payment is more than fifteen (15) days overdue, the Borrower will pay a late fee of $75 per late payment in addition to the overdue amount, without waiving the Lender's other remedies.

The loan is made for the following purpose: Purchase of café equipment.

The Borrower is in default if any payment is more than thirty (30) days overdue, if the Borrower becomes insolvent, or if the Borrower breaches this agreement. On default, the Lender may declare the entire outstanding Principal plus accrued interest immediately due and payable and may pursue any legal remedy, including enforcement of any collateral. The Borrower will pay the Lender's reasonable costs of collection, including legal fees.

This agreement is governed by the laws of Ontario and the federal laws of Canada applicable there. The parties submit to the courts of Ontario.

This agreement is the entire agreement between the parties about this loan, may only be changed in writing signed by both parties, and may be signed in counterparts (including electronic copies).

INTEREST-RATE LIMIT: Under section 347 of the federal Criminal Code, charging, receiving, or even offering/advertising interest at a criminal rate is an offence. The criminal rate is 35% APR for most loans (in effect since January 1, 2025; it was 60% effective annual rate before that). Exceptions: commercial loans between $10,000 and $500,000 are capped at 48% APR, larger commercial loans are exempt, and payday loans have their own cost-of-borrowing cap. Provincial consumer-protection and payday-loan rules may impose lower caps. Keep the rate within legal limits.

Jordan Miller

Example Café Partnership

Taylor Brooks

IMPORTANT: This is a template, not legal advice. Secured loans may require registration under provincial personal property security legislation to be effective against third parties. Have this agreement reviewed by a licensed lawyer in Ontario before signing.

IN WITNESS WHEREOF, the undersigned has duly executed this document as of the date first written above.

Executed by:

Printed name:

Printed name:

This document is a self-help template and does not constitute legal advice. Independent legal advice from a licensed lawyer in Ontario is recommended before reliance.