Another aspect of interest that you need to describe in detail is whether you have a fixed or variable interest rate. A fixed-rate loan means that the interest rate remains the same throughout the life of the loan, while a variable-rate loan means that the interest rate may change over time due to certain factors or events. A deferred payment loan is when the borrower and the lender enter into an agreement that allows the borrower to begin payments at a specific time in the future and not immediately. The credit service refers to the day-to-day management of a loan. Payment payments, record keeping, collection and tracking of defaults are all the responsibility of the Term Credit Service. A commercial loan agreement is a document that contains all the logistical details of the commercial debt that a borrower will assume. .