Taking on new senior financing, or lending behind an existing lender? PaperKit drafts a proper Subordination Agreement: a junior creditor agrees its debt and/or its lien against a common debtor ranks BEHIND a senior creditor's. It's the lending-branch companion to a security agreement and a personal guaranty. Pick what's subordinated: full debt subordination (the junior debt sits entirely behind the senior debt — no payments on it until the senior debt is paid in full), lien priority only (the junior keeps its ordinary payment rights, but its lien ranks behind the senior lien regardless of filing order), or payment subordination with blockage (the junior is paid in the ordinary course until a senior default triggers a payment-blockage notice and a standstill). Choose the context — a commercial loan, a real-estate/mortgage subordination, or an intercreditor deal — set the two debt amounts and the standstill window, and PaperKit computes the combined debt and the junior tranche's share, adds standstill-on-enforcement and turnover-of-payments protection, and assembles the whole agreement. Hosted online for the junior creditor to review & e-sign. Clean PDF.
The big lever — it decides WHAT ranks behind the senior debt, and which standstill/blockage sections appear.
Full debt subordination: the junior debt sits entirely behind the senior debt in right of payment. The junior creditor may not receive or retain any payment on the junior debt until the senior debt is paid in full — the strongest form for the senior lender.
Tunes the recitals, the party labels and the document title.
PaperKit shows the combined debt and the junior tranche's share of it in the banner.
A real, section-by-section subordination agreement. The subordination-type choice drives what ranks behind the senior debt and which sections appear. Publish to get a hosted link the junior creditor can e-accept online.
$9/mo — remove the DRAFT watermark + “Made with PaperKit” badge, unlimited clean-PDF subordination agreements, and Pro across every tool.
A subordination agreement is a template for convenience, not legal advice. It changes the relative priority of real debts and liens; the underlying loan and security documents, UCC filings, mortgage recordings and applicable state law continue to govern enforceability and perfection. PaperKit is not a law firm. Review the agreement and consult a qualified attorney.