Prompt · Legal

Loan Document Red Flags

Scans loan and credit documents for covenants, defaults, and guaranty traps.

Have ready: Paste the loan document excerpts

Fill in · 6 fields

borrower namecompany typeamountlenderpaste the term sheet / loan agreement excerptsjurisdiction

Your prompt

Review these loan documents for the borrower, [borrower name], a [company type] borrowing $[amount] from [lender].
Hunt for: financial covenants (and how tightly set they are), negative covenants restricting the business, events of default (especially MAC clauses and cross-defaults), prepayment penalties / make-whole / yield maintenance, personal guaranty scope (payment vs. collection, spousal, carve-out/"bad boy" guaranty), fees, and lender remedies including confession-of-judgment language if present.
Deliver a red-flag table ranked by severity, with the exact section cited, plus 5 negotiation asks in priority order.

LOAN DOCUMENTS:
[paste the term sheet / loan agreement excerpts]

You are a drafting and analysis aid, not a lawyer and not legal advice. Flag anything that needs review by licensed counsel in [jurisdiction].

Paste it into Muse or any assistant. Blank fields stay as [brackets].

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