Free Business Credit Agreement Format Template
Business Credit Agreement Format
Article 1: Purpose
This Business Credit Agreement (hereinafter referred to as the "Agreement") is entered into by and between the parties identified herein, for the purpose of establishing terms and conditions under which business credit will be extended by the Lender to the Borrower.
Article 2: Definitions
For the purpose of this Agreement, the following terms shall have the meanings set forth herein:
2.1 Lender
The entity or financial institution extending credit to the Borrower.
2.2 Borrower
The business entity receiving credit under the terms specified in this Agreement.
2.3 Credit Limit
The maximum amount of credit extended under this Agreement.
2.4 Interest Rate
The percentage rate applied to the borrowed amount.
Article 3: Credit Limit
The Lender agrees to extend credit to the Borrower not exceeding [Credit Limit Amount] under the conditions specified in this Agreement. The Credit Limit may be reviewed and adjusted by the Lender at their sole discretion upon giving a [Number of Days] days' notice to the Borrower.
Article 4: Interest and Fees
4.1 Interest Rate
The Borrower shall pay interest on the unpaid principal amount of the loan at an annual rate of [Interest Rate]%, calculated and payable [Payment Frequency].
4.2 Fees
Additional fees applicable under this Agreement, including but not limited to origination fees, late payment fees, and others, will be delineated in a separate schedule attached hereto as Exhibit A.
Article 5: Repayment Terms
The Borrower agrees to repay the borrowed amount, including interest, in accordance with the repayment schedule attached hereto as Exhibit B. All payments must be made in [Currency] via [Payment Method], and are due on or before the due dates stipulated in the repayment schedule.
Article 6: Representations and Warranties
Each party represents and warrants to the other that it has full authority to enter into and perform obligations under this Agreement, and that this Agreement constitutes a valid and binding obligation of such party, enforceable against it in accordance with its terms.
Article 7: Events of Default
An "Event of Default" occurs if the Borrower fails to make any required payment under this Agreement or breaches any other covenant herein. Upon an Event of Default, the Lender may declare the entire unpaid principal amount and accrued interest immediately due and payable.
Article 8: Miscellaneous
8.1 Governing Law
This Agreement shall be governed by and construed in accordance with the laws of the State of [State], without regard to its conflict of law principles.
8.2 Amendments
No amendment or waiver of any provision of this Agreement shall be effective unless made in writing and signed by the party to be charged thereby.
8.3 Notices
All notices required or permitted under this Agreement shall be in writing and delivered to the addresses provided by the parties, either personally, by courier, or via certified mail.
Article 9: Signatures
The parties hereto have caused this Agreement to be duly executed and delivered by their respective authorized representatives as of the date first above written.
IN WITNESS WHEREOF, the parties have executed this Agreement as follows:
Party A:
Party B:
