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Q: Our bank requires a loan agreement as a condition for along-term loan to our sports memorabilia store. What gives?

A: Welcome to the big leagues. With term loans, banks imposeconditions--calledcovenants--on your future operations. Theagreement states your rights (few) and your obligations (many).It's the real game and wipes out all verbal understandings. Theagreement may not fit all business. Three key points toremember:

1) Terms are negotiable only before you sign.

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