Representations and guarantees are used to assign risks between the parties to an agreement and to directly assert the manufacturer, if there are assurances or guarantees in the absence of guarantees. In a loan agreement, the misrepresentation of a borrower is usually a delay event with consequences that the lender can declare the loan immediately due and be payable and claim all security interest. The rental purchase is essentially the same as a standard lease-sale agreement, but with a large lump sum that is carried forward until the end of the contract. Unlike PCP, there is no guaranteed future value (GFV) and you do not have the option to return the vehicle to the lender at the end of the contract, with termination rights other than any voluntary rights you may have under the agreement. If a presentation is not accurate due to the existing circumstances, the borrower can exclude this information from the representation by dividing this information into a calendar to the loan agreement as follows: Although the terms are often used interchangeably, there is a difference. A presentation is an assertion about a fact that applies at the time of presentation, which is given to induce another party to enter into a contract or take another action. A guarantee is a commitment to compensate if the allegation is false. Although insurance and guarantees have different meanings and remedies under the law, the difference in the purposes of a loan contract does not matter, since the terms are used together and the consequences of an imprecise presentation or breach of the guarantee are contractually provided for in the loan agreement between the borrower and the lender. Finally, it is also important to note that special attention should be paid to the definition section of the loan contract and the impact these definitions may have on the “Representations and Guarantees” section. The borrower may try to change certain definitions to reduce the scope of representations, as shown in the example below, by adding the language mentioned in bold: debt financing may be essential for the day-to-day running of a business and a powerful expansion tool, but borrowers should be wary of the pitfalls in credit documents that may affect their business.