Free Term Sheet for Working Capital Template

Term Sheet for Working Capital

I. Introduction

This Term Sheet (the "Term Sheet") outlines the terms and conditions of the proposed working capital financing arrangement between [Your Company Name] (the "Lender") and [Borrower Name] (the "Borrower"). The parties intend to enter into a formal agreement based on the terms set forth herein.

II. Loan Details

  • Loan Amount: The Lender agrees to provide a working capital loan to the Borrower for 50,000 dollars (Fifty Thousand Dollars).

  • Interest Rate: The interest rate for the loan shall be 5.25% per annum, calculated on the outstanding principal balance and compounded monthly.

  • Repayment Terms: The Borrower shall repay the loan amount in 24 equal installments, beginning [Date], with the final installment due on [Date].

III. Collateral Requirements

  • The Borrower shall provide the following collateral as security for the loan:

    • A lien on the Borrower's commercial real estate property located at [Borrower's Address].

    • Pledge of 10,000 shares of common stock in [Your Company Name].

    • Assignment of accounts receivable generated from sales transactions with [Borrower's Name].

IV. Use of Funds

  • The working capital provided by the Lender shall be used solely for the following purposes:

    • Inventory financing.

    • Operating expenses coverage.

    • Marketing investment.

V. Conditions Precedent

Before the loan is disbursed, the following conditions must be satisfied:

  • The Borrower is required to supply any documentation that the Lender deems necessary and requests.

  • The Borrower is required to consistently sustain specific financial ratios that have been mutually agreed upon by both the Borrower and the Lender.

VI. Representations and Warranties

The Borrower represents and warrants to the Lender that:

  • The information provided to the Lender is true, accurate, and complete in all material respects.

  • The Borrower has the legal authority to enter into and perform its obligations under this agreement.

VII. Miscellaneous

  • Governing Law: This agreement shall be governed by and construed by the laws of [Jurisdiction].

  • Entire Agreement: This Term Sheet constitutes the entire agreement between the parties concerning the subject matter hereof and supersedes all prior and contemporaneous agreements and understandings, whether written or oral.

VIII. Signatures

This Term Sheet may be executed in counterparts, each of which shall be deemed an original, but all of which together shall constitute the same instrument. The parties hereto have caused this Term Sheet to be executed as of the date first written above.

Lender:

Borrower:

[Your Name]

[Date Signed]

[Borrower Name]

[Date Signed]

Term Sheet Templates @ Template.net