[{"data":1,"prerenderedAt":528},["ShallowReactive",2],{"document-line-of-credit-agreement-D14003":3},{"document":4,"label":22,"preview":11,"thumb":23,"thumb600":24,"description":5,"descriptionCustom":6,"apiDescription":5,"pages":8,"extension":10,"parents":25,"breadcrumb":29,"related":37,"customDescModule":176,"customdescription":6,"mdFm":177,"mdProseHtml":527},{"description":5,"descriptionCustom":6,"label":7,"pages":8,"size":9,"extension":10,"preview":11,"thumb":12,"svgFrame":13,"seoMetadata":14,"parents":16,"keywords":21},"LINE OF CREDIT AGREEMENT This Line of Credit Agreement (\"Agreement\") is entered into effect as of [DATE], BETWEEN: [LENDER NAME], (\"Leader\"), an individual with their main address located at OR a corporation organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [COMPLETE ADDRESS] AND: [BORROWER NAME], (\"Borrower\") an individual with their main address located at OR a corporation organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [COMPLETE ADDRESS] WHEREAS, the Borrower has requested a line of credit from the Lender, and the Lender is willing to extend such line of credit to the Borrower under the terms and conditions set forth in this Agreement; NOW, THEREFORE, in consideration of the mutual promises and agreements contained herein, the parties agree as follows: LINE OF CREDIT The Lender agrees to extend to the Borrower a line of credit up to a maximum amount of [MAXIMUM CREDIT AMOUNT] ([CURRENCY SYMBOL] [AMOUNT]), subject to the terms and conditions of this Agreement (the \"Line of Credit\"). DRAWS 2.1 The Borrower may draw on the Line of Credit from time to time, as needed, provided that the total amount of all outstanding draws does not exceed the maximum amount of the Line of Credit. Each draw must be requested in writing by the Borrower and shall be subject to the Lender's approval. INTEREST RATE 3.1 The outstanding balance of the Line of Credit shall accrue interest at a rate of [INTEREST RATE]% per annum. Interest shall be calculated on a [e.g., 360/365]-day basis and charged monthly. REPAYMENT 4",null,"Line Of Credit Agreement","3",513,"doc","https://templates.business-in-a-box.com/imgs/1000px/line-of-credit-agreement-D14003.png","https://templates.business-in-a-box.com/imgs/250px/14003.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#14003.xml",{"title":15,"description":6},"line of credit agreement",[17,20],{"label":18,"url":19},"Legal Agreements","/templates/business-legal-agreements/",{"label":18,"url":19},"line credit agreement","Line Of Credit Agreement Template","https://templates.business-in-a-box.com/imgs/400px/14003.png","https://templates.business-in-a-box.com/imgs/600px/14003.png",[26,17,20],{"label":27,"url":28},"Templates","/templates/",[30,31,34],{"label":27,"url":28},{"label":32,"url":33},"Finance & Accounting","/templates/finance-accounting/",{"label":35,"url":36},"Business Financing & Loans","/templates/business-financing-and-loans/",[38,41,45,49,53,57,61,65,69,73,77,81,85,102,118,133,147,162],{"label":7,"url":39,"thumb":40,"extension":10},"/template/line-of-credit-agreement-D13360","https://templates.business-in-a-box.com/imgs/250px/13360.png",{"label":42,"url":43,"thumb":44,"extension":10},"Promissory Note Line of Credit","/template/promissory-note-line-of-credit-D435","https://templates.business-in-a-box.com/imgs/250px/435.png",{"label":46,"url":47,"thumb":48,"extension":10},"Cancellation of Credit Line","/template/cancellation-of-credit-line-D182","https://templates.business-in-a-box.com/imgs/250px/182.png",{"label":50,"url":51,"thumb":52,"extension":10},"Revolving Credit Agreement","/template/revolving-credit-agreement-D14051","https://templates.business-in-a-box.com/imgs/250px/14051.png",{"label":54,"url":55,"thumb":56,"extension":10},"Credit Agreement","/template/credit-agreement-D416","https://templates.business-in-a-box.com/imgs/250px/416.png",{"label":58,"url":59,"thumb":60,"extension":10},"Credit Repair Agreement","/template/credit-repair-agreement-D13946","https://templates.business-in-a-box.com/imgs/250px/13946.png",{"label":62,"url":63,"thumb":64,"extension":10},"Credit Note","/template/credit-note-D13639","https://templates.business-in-a-box.com/imgs/250px/13639.png",{"label":66,"url":67,"thumb":68,"extension":10},"Credit Policy","/template/credit-policy-D12633","https://templates.business-in-a-box.com/imgs/250px/12633.png",{"label":70,"url":71,"thumb":72,"extension":10},"Credit Memo","/template/credit-memo-D261","https://templates.business-in-a-box.com/imgs/250px/261.png",{"label":74,"url":75,"thumb":76,"extension":10},"Denial of Credit","/template/denial-of-credit-D264","https://templates.business-in-a-box.com/imgs/250px/264.png",{"label":78,"url":79,"thumb":80,"extension":10},"Restrictions on Credit","/template/restrictions-on-credit-D278","https://templates.business-in-a-box.com/imgs/250px/278.png",{"label":82,"url":83,"thumb":84,"extension":10},"Request for Payment_Credit Line Exceeded","/template/request-for-payment_credit-line-exceeded-D230","https://templates.business-in-a-box.com/imgs/250px/230.png",{"description":86,"descriptionCustom":6,"label":87,"pages":88,"size":9,"extension":10,"preview":89,"thumb":90,"svgFrame":91,"seoMetadata":92,"parents":94,"keywords":93,"url":101},"LOAN AGREEMENT This Loan Agreement (\"Agreement\") is made and effective the [DATE], BETWEEN: [LENDER NAME] (the \"Lender\"), an individual with his main address located at OR a corporation organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [COMPLETE ADDRESS] AND: [YOUR COMPANY NAME] (the \"Borrower\"), a corporation organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [YOUR COMPLETE ADDRESS] Promise to Pay Within [NUMBER] months from today, Borrower promises to pay to Lender the sum of [AMOUNT], and interest and other charges stated below. Responsibility Although this Agreement may be signed below by more than one person, Borrower understands that both parties are individuals responsible for paying back the full amount. Breakdown of Loan Amount of Loan: Other (Describe): Amount Financed: Finance Charge: Total of Payments: Annual Rate: Repayment Borrower will repay the amount of this note in [NUMBER] equal uninterrupted monthly installments of [AMOUNT] each on the [DAY] of each month starting on the [DATE], and ending on [DATE]. Prepayment Borrower has the right to prepay the whole outstanding amount at any time","Loan Agreement","2","https://templates.business-in-a-box.com/imgs/1000px/loan-agreement-D417.png","https://templates.business-in-a-box.com/imgs/250px/417.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#417.xml",{"title":93,"description":6},"loan agreement",[95,97,100],{"label":32,"url":96},"finance-accounting",{"label":98,"url":99},"Business Loans","business-loan",{"label":98,"url":99},"/template/loan-agreement-D417",{"description":103,"descriptionCustom":6,"label":104,"pages":8,"size":105,"extension":10,"preview":106,"thumb":107,"svgFrame":108,"seoMetadata":109,"parents":110,"keywords":116,"url":117},"PROMISSORY NOTE This Promissory Note (the \"Note\") is made and effective the [DATE], BETWEEN: [LENDER NAME] (the \"Lender\"), an individual with his main address located at OR a corporation organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [COMPLETE ADDRESS] AND: [YOUR COMPANY NAME] (the \"Borrower\"), a corporation organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [YOUR COMPLETE ADDRESS] TERMS FOR VALUE RECEIVED, the Borrower promises to pay to the order of Lender, at its principal office located at [ADDRESS], or at such other place that is designated in writing by the holder hereof, the principal sum of [AMOUNT], together with all charges and interest herein provided, payable at the rate and in the manner hereinafter set forth: Borrower shall make monthly payments of principal and interest at the rate of [%] per annum based upon an amortization of [NUMBER] months. Monthly payments shall be due on or before the first day of each month with the first payment being due on or before [DATE]. If not sooner paid, all amounts due under this Note, including principal, interest and other charges shall be due and payable in full on or before the first day of [MONTH], [YEAR] (the \"Maturity Date\"). Time is of the essence of the payment obligations hereunder and each monthly payment shall be due and payable on or before the first day of each month. This Note is and will be secured by a certain first priority security interest in all of the tangible and intangible property of the Borrower, to be recorded in all applicable governmental offices. The parties shall execute a separate security agreement, in form and substance acceptable to the Lender in all respects. Borrower agrees to execute any such security agreements presented by the Lender or other documents required by the Lender in order to perfect its security interest in the above described property. Said Security Agreement and any other instruments and documents executed in connection with or given as security for this Note shall hereinafter be referred to collectively as the \"Loan Documents.\" All of the terms, covenants, Conditions, representations and warranties contained in the Loan Documents are hereby made part of this Note to the same extent and with the same force and effect as if fully set forth herein. If all or any portion of any payment due hereunder is not received by the Lender within [NUMBER] calendar days after the date when such payment is due, Borrower shall pay a late charge equal to [%] of such payment, such late charge to be immediately due and payable without demand by Lender. Borrower shall have the right to prepay all (but not a portion) of the indebtedness evidenced by this Note at any time, by paying the Lender an amount equal to the sum of (I) the principal balance then outstanding, (ii) all interest accrued to the date of such prepayment, (iii) all interest calculated through the Maturity Date, and (iv) any late charge or charges then due and owing. If any payment under this Note is not paid in full by the [DAY] of any month during the term hereof or if the entire amount due as represented by this Note is not paid in full on or before the Maturity Date, or should default be made in the performance or observation of any of the terms, covenants, or conditions contained in the Loan Documents, or if any representation or warranty contained in the Loan Documents is breached or is or becomes untrue, this Note shall be in default, and the entire principal amount outstanding hereunder, accrued interest thereon, all late charges, if any, and any and all other charges due hereunder, shall, at Lender's option, immediately become due and payable, without further notice, the giving of such notice being expressly waived by the Borrower","Promissory Note",39,"https://templates.business-in-a-box.com/imgs/1000px/promissory-note-D434.png","https://templates.business-in-a-box.com/imgs/250px/434.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#434.xml",{"title":6,"description":6},[111,112,113],{"label":32,"url":96},{"label":98,"url":99},{"label":114,"url":115},"Promissory Notes","promisory-note","promissory note","/template/promissory-note-D434",{"description":119,"descriptionCustom":6,"label":120,"pages":121,"size":122,"extension":10,"preview":123,"thumb":124,"svgFrame":125,"seoMetadata":126,"parents":127,"keywords":131,"url":132},"INTER-COMPANY SERVICES AGREEMENT This Inter-Company Services Agreement (the \"Agreement\") is effective [DATE], BETWEEN: [YOUR COMPANY NAME] (the \"First Party\"), a company organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [YOUR COMPLETE ADDRESS] AND: [SECOND PARTY NAME] (the \"Associate Company\"), a company organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [COMPLETE ADDRESS] PREAMBLE WHEREAS [YOUR COMPANY NAME] is a [SPECIFY INDUSTRY] company specialized in [SPECIFY COMPANY SPECIALIZATION]; WHEREAS Associate Company is a company specializing in [SPECIFY]; WHEREAS the parties and Company are desirous of working together in relation to the conduct of [SPECIFY PROJECT]; NOW THEREFORE this Agreement witnessed that in consideration of the premises and other good and valuable consideration, the parties hereto agree as follows: 1. DEFINITIONS In this Agreement, except where the context or subject matter is inconsistent therewith, the following terms shall have the following meanings: 1.1 \"Agreement\" shall mean this document, the annexed schedules, which are incorporated herein, together with any future written and executed amendments agreed to by the parties. 1.2 \"Affiliated Companies\" shall mean any corporation or other business enterprise, which directly or indirectly controls, is controlled by, or is under common control by a party. 1.3 \"Associated Staff\" shall mean any officer, director, employee, agent, or student of a Party, and any other person involved in the execution of this Agreement, excluding patients solely involved as subjects in studies. 1.4 \"Documentation\" shall mean all documents, regardless of form, relating to the Project. 1.5 \"Intellectual Property Rights\" shall mean any and all rights, title and interest in and to any and all ideas, discoveries, inventions, creations, works and know-how including, without limitation, patents, trademarks, service marks, designs, integrated circuit topographies, copyrights, including applications for any of the foregoing, as well as design rights, confidential information, trade secrets and any other similar intellectual property rights protected in [COUNTRY] and in any other country. 1.6 \"Material\" shall mean any and all information and materials, relating to a Party's business, business processes and methods of doing business, given to the other Party from time to time for review, data processing, or for any other reason, and all copies thereof regardless of form or storage medium, including, but not limited to, documentation, notes, formulae, components, drawings, data, flow-charts, plans, specifications, techniques, processes, algorithms, inventions, prototypes, protocols, patent portfolio, pre-clinical and clinical studies, contracts, marketing and other financial and business plans, and includes, without limitation, all confidential and proprietary information which is at any time so designated a Party by the other Party, either in writing or orally. 1.7 \"Project\" shall mean [DESCRIBE THE DETAILS OF THE PROJECT]. 1.8 \"Services\" shall mean the services as described in Subsection 2.1 hereof. 2. SCOPE OF WORK 2.1 The parties agree to act as independent contractors for each other. [YOUR COMPANY NAME] will perform professional services as described in Schedule \"A\" to this Agreement (the \"Company Services\"), a copy of which has been appended hereto and initialed by the parties for identification. Associate Company will perform professional services as described in Schedule \"B\" (the \"Associate Company Services\"), a copy of which has been appended hereto and initialed by the parties for identification. \"Services\" shall mean either or both of the Company Services and the Associate Company Services, as the case may be. 2.2 Each Party agrees to use its best efforts to assign personnel with the proper skill level and type of experience, to ensure that the Services will be completed in a timely and successful manner. 2.3 In the event that a Party does not have personnel with the proper skill level or experience to provide the Services required under the terms of this Agreement, such Party may engage the services of such competent personnel, or may subcontract or assign a portion of the Services to be rendered, with the prior written consent of the other Party to this Agreement. Notwithstanding such approval, the sub-contracting Party shall be primarily responsible and liable for the services rendered by such personnel, subcontractor or assignee and shall be responsible for the payment of the remuneration payable to such personnel, subcontractor or assignee, which shall be included in the total compensation described in Section 3 hereof. 2.4 Each Party will, on a regular basis, keep the other Party appraised of the work in progress under the terms of this Agreement and will meet from time to time with the other Party, to review the Services performed or to be performed under the provisions hereof. 3. FEES AND EXPENSES 3.1 Associate Company will pay [YOUR COMPANY NAME] for Company Services satisfactorily rendered pursuant to the payment schedule described in Schedule \"C\" to this Agreement (the \"Company Budget\"), a copy of which has been appended hereto and initialed by the Parties for identification. Company shall not be permitted to incur any cost or expense that would cause the Company Budget to be exceeded, without the prior written approval of [YOUR COMPANY NAME], in the form of an amendment to this Agreement. 3.2 [YOUR COMPANY NAME] will pay Associate Company for Associate Company Services satisfactorily rendered pursuant to the payment schedule described in Schedule \"D\" to this Agreement (the \"Associate Company Budget\"), a copy of which has been appended hereto and initialed by the parties for identification. Associate Company shall not be permitted to incur any cost or expense that would cause the Associate Company Budget to be exceeded, without the prior written approval of the Company, in the form of an amendment to this Agreement. 4. RELATIONSHIP OF THE PARTIES 4.1 As each Party is undertaking to perform professional services for the other, and is doing so as an independent contractor and not as an employee, agent, partner, or joint venturer of the other Party, the fees will be limited to those stated in Schedules \"C\" and \"D\", attached hereto, as the case may be. Neither Party will participate in any employee benefit plans of the other Party nor receive any other compensation beyond that stated in such Schedules \"C\" and \"D\". Neither Party will have any power or authority to bind the other or to assume or create any obligation or responsibility, express or implied, on the other's behalf or in the other's name, and neither Party will represent to any person or entity that it has such power or authority. 5. STATUS OF THE PARTIES 5.1 Neither Party is responsible for verifying the existence or sufficiency of the qualifications, authorizations, permits or licenses of the other Party and/or the other Party's employees. Each Party represents and warrants that it and any of its employees are authorized to work and are not acting and will not act during the term of this Agreement in violation of any applicable laws and the regulations thereunder or any agreement it has entered into with a third party. Each Party will indemnify the other Party against any and all claims, damages, losses and other liabilities including, but not limited to, fines, penalties, and/or attorneys' fees incurred by a Party because the other Party and/or the other Party's employees or agents are not authorized to perform all or part of the Services. 6. EQUIPMENT, TOOLS, MATERIALS AND/OR SUPPLIES 6","Inter-Company Services Agreement","17",98,"https://templates.business-in-a-box.com/imgs/1000px/inter-company-services-agreement-D886.png","https://templates.business-in-a-box.com/imgs/250px/886.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#886.xml",{"title":6,"description":6},[128,130],{"label":18,"url":129},"business-legal-agreements",{"label":18,"url":129},"inter company services agreement","/template/inter-company-services-agreement-D886",{"description":134,"descriptionCustom":6,"label":135,"pages":136,"size":137,"extension":10,"preview":138,"thumb":139,"svgFrame":140,"seoMetadata":141,"parents":142,"keywords":145,"url":146},"SECURITY AGREEMENT This Security Agreement (the \"Agreement\") is made and effective [DATE], BETWEEN: [SECURED PARTY NAME] (the \" Secured Party\"), a corporation organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [COMPLETE ADDRESS] AND: [YOUR COMPANY NAME] (the \"Debtor\"), a corporation organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [YOUR COMPLETE ADDRESS] For value received, the undersigned Debtor, promises to pay to the order of [name], together with any other holder of this note (\"Secured Party\"), [amount], with interest at the rate of [%] per annum. Payment shall be made in successive equal monthly installments of [amount]. Each such Installment is payable on the [day] of each month, commencing on [date]. Recitals WHEREAS, the Secured Party has extended to the Debtor a certain loan as evidenced by a certain promissory note, in the original principal amount equal to [amount] dated on even date herewith (the \"Note\"); and WHEREAS, the Debtor wishes to grant a first priority security interest in and to all of the Debtor's tangible and intangible personal property pursuant to the terms hereof; NOW, THEREFORE, for and in consideration of the foregoing and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, and intending to be legally bound hereby, the parties hereto covenant and agree as follows: DEFINITIONS The following terms shall have the meanings herein specified unless the context otherwise requires. Such definitions shall be equally applicable to the singular and plural forms of the terms defined: \"Contracts\" shall mean all contracts between the Debtor and one or more additional parties. \"Contract Rights\" shall mean all rights of the Debtor (including, without limitation, all rights to payment) under each Contract. \"Copyrights\" shall mean any [country] copyright to which the Debtor now or hereafter has title, as well as any application for a [country] copyright hereafter made by the Debtor. \"Equipment\" shall mean any \"equipment,\" as such term is defined in the [law or code] as in effect on the date hereof in the State of [state/province], now or hereafter owned by Debtor and, in any event, shall include, but shall not be limited to, all machinery, equipment, furnishings, fixtures and vehicles now or hereafter owned by the Debtor and any and all additions, substitutions and replacements of, any of the foregoing, wherever located, together with all attachments, components, parts, equipment and accessories installed thereon or affixed thereto. \"General Intangibles\" shall have the meaning assigned that term under the [LAW OR CODE] as in effect on the date hereof in the State of [state/province]. \"Goods\" shall have the meaning assigned that term under the [LAW OR CODE] as in effect on the date hereof in the State of [state/province]. \"Inventory\" shall mean all raw materials, workinprocess, and finished inventory of the Debtor of every type or description and all documents of title covering such inventory, and shall specifically include all \"inventory\" as such term is defined in the [law or code] as in effect on the date hereof in the State of [state/province], now or hereafter owned by the Debtor. \"Marks\" shall mean any trademarks and service marks now held or hereafter acquired by the Debtor, which are registered in the [country] Patent and Trademark Office, as well as any unregistered marks used by the Debtor in the [COUNTRY] and trade dress, including logos and/or designs, in connection with which any of these registered or unregistered marks are used. \"Obligations\" shall mean: (i) all indebtedness, obligations and liabilities (including, without limitation, guarantees and other contingent liabilities) of the Debtor to the Secured Party, including but not limited to the Note; (ii) any and all sums advanced by the Secured Party in order to preserve the Collateral or preserve its security interest in the Collateral; and (iii) in the event of any proceeding for the collection or enforcement of any indebtedness, obligations or liabilities of the Debtor referred to in clause (i), after an Event of Default shall have occurred and be continuing, the reasonable expenses of retaking, holding, preparing for sale or lease, selling or otherwise disposing or realizing on the Collateral, or of any exercise by the Collateral Agent of its rights hereunder, together with reasonable attorneys' fees and court costs. \"Patents\" shall mean any [country] patent to which the Debtor now or hereafter has title, as well as any application for a [country] patent now or hereafter made by Debtor. \"Proceeds\" shall have the meaning assigned that term under the [law or code] as in effect in the State of [state/province] on the date hereof or under other relevant law and, in any event, shall include, but not be limited to, (i) any and all proceeds of any insurance, indemnity, warranty or guaranty payable to the Secured Party or the Debtor from time to time with respect to any of the Collateral, (ii) any and all payments (in any form whatsoever) made or due and payable to the Debtor from time to time in connection with any requisition, confiscation, condemnation, seizure or forfeiture of all or any part of the Collateral by any governmental authority and (iii) any and all other amounts from time to time paid or payable under or in connection with any of the Collateral. \"Receivables\" shall mean any \"account\" as such term is defined in the [law or code] as in effect on the date hereof in the State of [STATE/PROVINCE], now or hereafter owned by Debtor and, in any event, shall include, but shall not be limited to, all of the Debtor's rights to payment for goods sold or leased or services performed by the Debtor, whether now in existence or arising from time to time hereafter, including, without limitation, rights evidenced by an account, note, contract, security agreement, or other evidence of indebtedness or security, together with (i) all security pledged, assigned, hypothecated or granted to or held by the Debtor to secure the foregoing; (ii) all of the Debtor's right, title and interest in and to any goods, the sale of which gave rise thereto; (iii) all guarantees, endorsements and indemnifications on, or of, any of the foregoing; (iv) all powers of attorney for the execution of any evidence of indebtedness or security or other writing in connection therewith; (v) all books, records, ledger cards and invoices relating thereto; (vi) all evidences of the filing of financing statements and other statements and the registration of other instruments in connection therewith and amendments thereto, notices to other creditors or secured parties, and certificates from filing or other registration officers; (vii) all credit information, reports and memoranda relating thereto and (viii) all other writings related in any way to the foregoing. GRANT OF SECURITY INTEREST The Debtor does hereby grant to the Secured Party a continuing security interest of first priority in all of the right, title and interest of the Debtor in, to and under all of the following property whether now existing or hereafter created or arising: ","Security Agreement","10",96,"https://templates.business-in-a-box.com/imgs/1000px/security-agreement-D915.png","https://templates.business-in-a-box.com/imgs/250px/915.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#915.xml",{"title":6,"description":6},[143,144],{"label":18,"url":129},{"label":18,"url":129},"security agreement","/template/security-agreement-D915",{"description":148,"descriptionCustom":6,"label":149,"pages":88,"size":9,"extension":10,"preview":150,"thumb":151,"svgFrame":152,"seoMetadata":153,"parents":155,"keywords":154,"url":161},"PERSONAL GUARANTEE This Personal Guarantee (the \"Agreement\") is effective [DATE], BETWEEN: [FIRST PARTY NAME] (the \"Guarantor\"), an individual with his main address located at: [YOUR COMPLETE ADDRESS] AND: [YOUR COMPANY NAME] (the \"Second Party\"), a company organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [YOUR COMPLETE ADDRESS] I, [NAME OF GUARANTOR], residing at [COMPLETE ADDRESS], hereby personally and solidarity guarantee all of the obligations of [YOUR COMPANY NAME] and agree to be bound solidarity with [YOUR COMPANY NAME] for the prompt performance of [YOUR COMPANY NAME]'s obligations under that certain [SPECIFY] Agreement dated [DATE] (the \"Agreement\") between [YOUR COMPANY NAME] and [COMPANY NAME], including without limitation the payment of all goods, wares and merchandise as [YOUR COMPANY NAME] may from time to time select and purchase on credit from [COMPANY NAME], and hereby expressly renounce to the benefits of division and discussion. Furthermore, I agree that waive may extend the time for payment of any amounts owing to it by waive and/or may waive any default by waive without it in any way lessening or limiting my liability hereunder. Notwithstanding the foregoing, my guarantee hereunder to pay any and all amounts owing by [YOUR COMPANY NAME] to [COMPANY NAME] shall be limited to the sum of [AMOUNT] OR [%] of such outstanding amount.","Personal Guarantee","https://templates.business-in-a-box.com/imgs/1000px/personal-guarantee-D405.png","https://templates.business-in-a-box.com/imgs/250px/405.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#405.xml",{"title":154,"description":6},"personal guarantee",[156,157,158],{"label":32,"url":96},{"label":98,"url":99},{"label":159,"url":160},"Guaranties & Collateral","guaranties-collateral","/template/personal-guarantee-D405",{"description":163,"descriptionCustom":6,"label":62,"pages":164,"size":9,"extension":10,"preview":165,"thumb":64,"svgFrame":166,"seoMetadata":167,"parents":169,"keywords":174,"url":175},"CREDIT NOTE CREDIT NOTE NUMBER: [Unique Credit Note Number] INVOICE NUMBER: [Related Invoice Number] DATE OF INVOICE: [Date of Related Invoice] [YOUR COMPANY NAME] [YOUR COMPANY ADDRESS] [CITY, STATE, ZIP CODE] [DATE] [CUSTOMER NAME] [CUSTOMER ADDRESS] [CITY, STATE, ZIP CODE] ","1","https://templates.business-in-a-box.com/imgs/1000px/credit-note-D13639.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#13639.xml",{"title":168,"description":6},"credit note",[170,173],{"label":171,"url":172},"Credit & Collection","credit-collection",{"label":171,"url":172},"credit application","/template/credit-application-D13639",false,{"seo":178,"reviewer":189,"legal_disclaimer":193,"quick_facts":194,"at_a_glance":196,"personas":200,"variants":225,"glossary":250,"clauses":287,"how_to_fill":338,"common_mistakes":379,"faqs":404,"industries":432,"comparisons":457,"diy_vs_lawyer":471,"jurisdictions":484,"related_template_ids_curated":505,"schema":514,"classification":515},{"meta_title":179,"meta_description":180,"primary_keyword":181,"secondary_keywords":182,"family":181,"is_canonical":176},"Line of Credit Agreement Template (Free Word)","Free line of credit agreement template for business lending. Covers credit limit, draw schedule, interest rate, repayment, covenants, and default. Free Word and PDF download.","line of credit agreement template",[15,183,184,185,186,187,188],"business line of credit agreement template","line of credit contract template","line of credit agreement template word","credit facility agreement template","line of credit agreement free download","small business line of credit agreement",{"name":190,"credential":191,"reviewed_date":192},"Bruno Goulet","CEO, Business in a Box","2026-05-02",true,{"difficulty":195,"legal_review_recommended":193,"signature_required":193,"notarization_required":176},"advanced",{"what_it_is":197,"when_you_need_it":198,"whats_inside":199},"A Line of Credit Agreement is a legally binding contract between a lender and a borrower that establishes a revolving or non-revolving credit facility up to a defined maximum amount. This free Word download gives you a structured, attorney-reviewed starting point — covering credit limit, draw conditions, interest rate, repayment schedule, covenants, events of default, and collateral — that you can edit online and export as PDF for execution.\n","Use it whenever a lender extends a standing credit facility to a business or individual borrower — including when a company needs flexible working capital, when a private lender advances funds in tranches, or when two parties formalize an informal credit arrangement that has been operating without documentation.\n","Parties and credit limit, draw and availability conditions, interest rate and calculation method, repayment and minimum payment terms, fees, covenants (affirmative and negative), events of default, remedies, collateral and security interest, and governing law with dispute resolution.\n",[201,205,209,213,217,221],{"title":202,"use_case":203,"icon_asset_id":204},"Small business owners","Formalizing a revolving credit facility with a bank or private lender for working capital","persona-small-business-owner",{"title":206,"use_case":207,"icon_asset_id":208},"Private lenders and investors","Documenting a credit line extended to a portfolio company or borrower","persona-private-lender",{"title":210,"use_case":211,"icon_asset_id":212},"CFOs and finance directors","Establishing an intercompany credit facility between parent and subsidiary entities","persona-cfo",{"title":214,"use_case":215,"icon_asset_id":216},"Startup founders","Securing a flexible credit line from an angel or family-office lender before bank financing is available","persona-startup-founder",{"title":218,"use_case":219,"icon_asset_id":220},"Commercial real estate operators","Drawing on a secured line of credit tied to property equity for renovations or acquisitions","persona-real-estate-operator",{"title":222,"use_case":223,"icon_asset_id":224},"Accountants and financial advisors","Helping clients formalize undocumented credit arrangements that carry tax or audit risk","persona-accountant",[226,230,233,237,240,243,246],{"situation":227,"recommended_template":228,"slug":229},"Revolving credit that resets as the borrower repays","Revolving Line of Credit Agreement","revolving-credit-agreement-D14051",{"situation":231,"recommended_template":232,"slug":229},"Fixed-draw credit facility with no ability to re-borrow repaid amounts","Non-Revolving Line of Credit Agreement",{"situation":234,"recommended_template":235,"slug":236},"Credit line secured by specific collateral such as inventory or receivables","Secured Line of Credit Agreement","line-of-credit-agreement-D14003",{"situation":238,"recommended_template":239,"slug":236},"Unsecured credit line based solely on borrower creditworthiness","Unsecured Line of Credit Agreement",{"situation":241,"recommended_template":242,"slug":236},"Credit extended by one individual to another for personal purposes","Personal Line of Credit Agreement",{"situation":244,"recommended_template":87,"slug":245},"One-time fixed-amount loan with a set repayment schedule instead of a revolving facility","loan-agreement-D417",{"situation":247,"recommended_template":248,"slug":249},"Intercompany advance between affiliated entities within a corporate group","Intercompany Loan Agreement","inter-company-services-agreement-D886",[251,254,257,260,263,266,269,272,275,278,281,284],{"term":252,"definition":253},"Credit Limit","The maximum outstanding balance the borrower may carry at any one time under the line of credit.",{"term":255,"definition":256},"Draw","A specific advance of funds the borrower requests against the available balance of the credit line.",{"term":258,"definition":259},"Revolving Credit","A credit structure where repaid principal becomes available to borrow again, up to the credit limit, throughout the facility term.",{"term":261,"definition":262},"Availability","The portion of the credit limit not currently drawn — the amount the borrower may still access at a given point in time.",{"term":264,"definition":265},"Interest Rate","The annualized percentage charged on the outstanding drawn balance, which may be fixed or variable (e.g., tied to the prime rate or SOFR plus a spread).",{"term":267,"definition":268},"Facility Fee","A periodic charge — typically expressed as a percentage of the total credit limit — paid regardless of how much of the line is drawn.",{"term":270,"definition":271},"Covenant","A contractual promise by the borrower to do (affirmative covenant) or refrain from doing (negative covenant) certain things while the facility is outstanding.",{"term":273,"definition":274},"Event of Default","A defined triggering condition — such as missed payment, breach of covenant, or insolvency — that entitles the lender to demand immediate repayment of all outstanding amounts.",{"term":276,"definition":277},"Acceleration","The lender's right, upon an event of default, to declare the entire outstanding balance immediately due and payable before its scheduled maturity.",{"term":279,"definition":280},"Security Interest","A lender's legal claim over specified collateral — such as accounts receivable, inventory, or real property — that the lender may seize and liquidate if the borrower defaults.",{"term":282,"definition":283},"SOFR","Secured Overnight Financing Rate — the benchmark interest rate that replaced LIBOR in the United States for pricing floating-rate credit facilities.",{"term":285,"definition":286},"Maturity Date","The date on which the credit facility expires and any outstanding balance must be repaid in full unless the facility is renewed or extended.",[288,293,298,303,308,313,318,323,328,333],{"name":289,"plain_english":290,"sample_language":291,"common_mistake":292},"Parties, recitals, and definitions","Identifies the lender and borrower by full legal name, establishes the purpose of the credit facility, and defines every capitalized term used throughout the agreement.","This Line of Credit Agreement ('Agreement') is entered into as of [DATE] between [LENDER LEGAL NAME], a [STATE/COUNTRY] [ENTITY TYPE] ('Lender'), and [BORROWER LEGAL NAME], a [STATE/COUNTRY] [ENTITY TYPE] ('Borrower'). Lender agrees to extend to Borrower a line of credit on the terms set forth herein.","Using trade names instead of full registered legal entity names. If the named party doesn't match the executing entity, the agreement may be unenforceable against the intended party.",{"name":294,"plain_english":295,"sample_language":296,"common_mistake":297},"Credit limit and availability","Sets the maximum amount the borrower may have outstanding at any time and explains how availability is calculated as repayments are made.","Lender shall make available to Borrower a revolving line of credit in a maximum aggregate principal amount not to exceed [CREDIT LIMIT] (the 'Credit Limit'). Availability at any time equals the Credit Limit minus the sum of all outstanding Draws.","Failing to specify whether the facility is revolving or non-revolving. The distinction determines whether repaid amounts can be re-borrowed — an omission that triggers disputes when the borrower tries to draw again.",{"name":299,"plain_english":300,"sample_language":301,"common_mistake":302},"Draw conditions and request procedure","States how and when the borrower may request funds — including notice period, minimum draw amount, and any conditions precedent (such as no existing event of default).","Borrower may request a Draw by delivering written notice to Lender no less than [X] business days prior to the requested funding date. Each Draw shall be in a minimum amount of $[MINIMUM DRAW AMOUNT]. No Draw shall be made if an Event of Default has occurred and is continuing.","Setting no minimum draw amount or notice period. Without these, the lender faces operational friction from micro-draws and same-day funding demands that create processing and liquidity problems.",{"name":304,"plain_english":305,"sample_language":306,"common_mistake":307},"Interest rate and calculation","Specifies the interest rate applicable to drawn balances — fixed or floating — the calculation basis (360 or 365 days), and when interest accrues.","Outstanding principal shall accrue interest at a per annum rate equal to [FIXED RATE]% / the [PRIME RATE / SOFR] plus [SPREAD]%, calculated on the basis of actual days elapsed over a [360/365]-day year. Interest shall accrue daily on the outstanding principal balance.","Referencing LIBOR in new agreements. LIBOR was discontinued at end of June 2023. All floating-rate credit agreements must reference SOFR (US), SONIA (UK), or €STR (EU) — or another agreed replacement benchmark.",{"name":309,"plain_english":310,"sample_language":311,"common_mistake":312},"Repayment schedule and minimum payments","Defines when and how the borrower must repay drawn amounts — monthly interest-only, minimum principal payments, or full repayment at maturity — and whether early repayment is permitted.","Borrower shall pay accrued interest monthly on the [DAY] of each calendar month. Principal is due in full on the Maturity Date of [DATE]. Borrower may prepay outstanding principal at any time without penalty / subject to a prepayment fee of [X]%.","No prepayment provision at all. If the agreement is silent on prepayment, whether the borrower can repay early without penalty is unclear — creating disputes when the borrower tries to reduce their balance.",{"name":314,"plain_english":315,"sample_language":316,"common_mistake":317},"Fees","Lists all fees payable under the facility — commitment fee, facility fee, draw fee, late payment fee — with amounts, calculation basis, and due dates.","Borrower shall pay Lender: (a) a facility fee of [X]% per annum on the Credit Limit, payable quarterly; (b) a draw fee of $[AMOUNT] per Draw request; and (c) a late fee of [X]% on any payment not received within [X] days of its due date.","Omitting a late payment fee or setting it too low. Without a meaningful late fee, there is no financial incentive for the borrower to pay on time — and no contractual remedy short of declaring a full event of default.",{"name":319,"plain_english":320,"sample_language":321,"common_mistake":322},"Covenants","Sets affirmative obligations (e.g., deliver financial statements, maintain insurance, pay taxes) and negative restrictions (e.g., no additional debt above a threshold, no asset sales without consent) on the borrower while the facility is outstanding.","Borrower shall: (a) deliver unaudited financial statements within [X] days of each quarter end; (b) maintain a debt-service coverage ratio of not less than [X]:1; and (c) not incur additional indebtedness in excess of $[AMOUNT] without Lender's prior written consent.","Using financial covenants without defining the calculation method precisely. A covenant requiring a 1.25x DSCR is meaningless without specifying whether EBITDA, operating income, or cash flow from operations forms the numerator.",{"name":324,"plain_english":325,"sample_language":326,"common_mistake":327},"Events of default and remedies","Enumerates specific triggering conditions — missed payment, covenant breach, insolvency, material adverse change — that entitle the lender to accelerate the balance and pursue remedies.","Each of the following constitutes an Event of Default: (a) Borrower's failure to pay any amount due within [X] days of its due date; (b) breach of any covenant not cured within [X] days of notice; (c) Borrower's insolvency, bankruptcy filing, or assignment for the benefit of creditors; (d) a Material Adverse Change in Borrower's financial condition.","No cure period for covenant breaches. An instant default on any covenant breach — without a notice-and-cure window — gives lenders disproportionate power and may be challenged as unconscionable in some jurisdictions.",{"name":329,"plain_english":330,"sample_language":331,"common_mistake":332},"Collateral and security interest","Describes the collateral pledged to secure the line (if any), grants the lender a security interest, and specifies perfection steps such as UCC filing.","To secure all obligations hereunder, Borrower hereby grants Lender a first-priority security interest in all of Borrower's accounts receivable, inventory, and equipment, now owned or hereafter acquired. Lender is authorized to file UCC-1 financing statements to perfect such interest.","No collateral clause on a secured facility, or a collateral description too narrow to cover after-acquired property. An unperfected or under-described security interest leaves the lender as an unsecured creditor in a bankruptcy proceeding.",{"name":334,"plain_english":335,"sample_language":336,"common_mistake":337},"Governing law, dispute resolution, and miscellaneous","Specifies which jurisdiction's law governs, how disputes are resolved (arbitration or litigation), and includes standard boilerplate — integration, amendment, waiver, severability, and notice provisions.","This Agreement is governed by the laws of [STATE / PROVINCE / COUNTRY], without regard to conflicts-of-law principles. Any dispute shall be resolved by [binding arbitration / litigation in the courts of [JURISDICTION]]. This Agreement constitutes the entire agreement between the parties and supersedes all prior negotiations.","Choosing a governing law with no connection to where either party operates or where collateral is located. Enforcing a security interest or judgment under a foreign governing law adds cost and delay that most lenders and borrowers underestimate.",[339,344,349,354,359,364,369,374],{"step":340,"title":341,"description":342,"tip":343},1,"Enter the parties' full legal names and entity details","Use each party's complete registered legal name — not a trade name or DBA — along with their state or province of formation, entity type, and principal address.","Pull the exact legal name from your state's business registry to avoid mismatches with signatures on file at the bank or UCC office.",{"step":345,"title":346,"description":347,"tip":348},2,"Set the credit limit and facility type","Enter the maximum aggregate credit amount and explicitly state whether the facility is revolving (repaid amounts can be re-borrowed) or non-revolving (each draw permanently reduces availability).","If the facility is revolving, include a clause confirming that each repayment automatically restores availability — this prevents future disputes about re-draw rights.",{"step":350,"title":351,"description":352,"tip":353},3,"Define the interest rate and calculation basis","State the rate as fixed or floating. For floating rates, reference a current benchmark (SOFR + spread in the US; SONIA + spread in the UK) and specify the day-count convention — 360 or 365 days.","Include a floor rate (e.g., 'not less than 3.00% per annum') on floating-rate facilities to protect the lender if benchmark rates drop sharply.",{"step":355,"title":356,"description":357,"tip":358},4,"Specify draw conditions and minimum draw amounts","Set the notice period for draw requests (typically 2–5 business days), the minimum draw amount, and the conditions that must be satisfied — no existing event of default, representations still true — before a draw is funded.","Require draw requests in writing via a signed draw notice form, attached as Exhibit A, to create a clear paper trail for every advance.",{"step":360,"title":361,"description":362,"tip":363},5,"Complete the repayment and fee schedule","Enter payment due dates, whether payments are interest-only during the draw period, the maturity date for principal, and all applicable fees — facility fee, draw fee, and late payment fee.","Set the late fee at 1.5–5% of the overdue amount per month. Below 1.5% rarely changes borrower behavior; above 5% may be deemed a penalty and unenforceable in some jurisdictions.",{"step":365,"title":366,"description":367,"tip":368},6,"Draft covenants proportionate to the borrower's risk profile","Choose affirmative covenants (financial reporting, insurance maintenance, tax compliance) and negative covenants (additional debt cap, asset disposal restrictions) calibrated to the credit limit and borrower's financial condition.","Include a financial covenant with a specific ratio — such as a minimum current ratio of 1.2:1 or a maximum debt-to-equity of 3:1 — and define exactly how each metric is calculated.",{"step":370,"title":371,"description":372,"tip":373},7,"Describe the collateral and authorize UCC filing","For a secured facility, describe the collateral with sufficient specificity — accounts receivable, inventory, equipment, or 'all assets' — and include authorization for the lender to file a UCC-1 financing statement to perfect the security interest.","File the UCC-1 within 5 business days of signing. Priority over other creditors is determined by the date of filing, not the date of the agreement.",{"step":375,"title":376,"description":377,"tip":378},8,"Sign before any funds are advanced","Both parties must execute the agreement — and any required security agreement or guarantee — before the first draw is funded. Post-draw signatures raise consideration issues and may leave the lender's security interest unperfected.","Use a countersignature block that records the date of each party's signature separately. A signature date after the first draw date creates immediate enforceability risk.",[380,384,388,392,396,400],{"mistake":381,"why_it_matters":382,"fix":383},"Referencing LIBOR as the floating rate benchmark","LIBOR was permanently discontinued in June 2023. Any agreement that references LIBOR with no fallback provision has no functioning interest rate calculation after that date, creating a material ambiguity that may require court intervention to resolve.","Replace all LIBOR references with SOFR (US), SONIA (UK), or €STR (EU) and include a benchmark replacement fallback clause in case the chosen rate is also discontinued.",{"mistake":385,"why_it_matters":386,"fix":387},"Omitting the revolving vs. non-revolving distinction","If the agreement doesn't specify, borrowers commonly assume they can re-borrow repaid amounts while lenders assume the opposite — a dispute that is expensive to resolve after funds have already been advanced.","State explicitly in the credit limit clause whether repaid principal restores availability and include a sentence confirming the mechanism by which availability is recalculated.",{"mistake":389,"why_it_matters":390,"fix":391},"No cure period for covenant breaches","An agreement that treats any covenant breach as an immediate event of default gives lenders a hair-trigger acceleration right that courts in several jurisdictions have found unconscionable, potentially voiding the default clause.","Include a tiered cure period — typically 5 business days for payment defaults and 30 calendar days for covenant breaches — before an event of default is formally declared.",{"mistake":393,"why_it_matters":394,"fix":395},"Collateral description too narrow to cover after-acquired property","A security interest in 'current inventory as of the date hereof' does not attach to inventory purchased the following week. The lender ends up unsecured on a growing portion of the collateral base.","Use the phrase 'now owned or hereafter acquired' in the collateral description and confirm the UCC-1 filing covers after-acquired property under Article 9 of the Uniform Commercial Code.",{"mistake":397,"why_it_matters":398,"fix":399},"No integration clause","Without an entire-agreement clause, prior term sheets, emails, or oral promises can be admitted as evidence of additional credit terms — exposing the lender to obligations never formally agreed.","Include a standard integration clause: 'This Agreement constitutes the entire agreement between the parties with respect to the credit facility and supersedes all prior negotiations, representations, and agreements.'",{"mistake":401,"why_it_matters":402,"fix":403},"Failing to require guarantees for thinly capitalized borrowers","A credit line extended to an LLC or shell company with minimal assets gives the lender no practical recourse if the entity defaults and has insufficient collateral. Recovery may be zero.","For borrowers without sufficient standalone assets, attach a personal or corporate guarantee as an exhibit and require its execution as a condition precedent to the first draw.",[405,408,411,414,417,420,423,426,429],{"question":406,"answer":407},"What is a line of credit agreement?","A line of credit agreement is a legally binding contract between a lender and a borrower that establishes a credit facility — typically revolving — up to a defined maximum amount. Unlike a term loan, the borrower draws only what is needed, repays it, and can borrow again up to the credit limit throughout the facility term. The agreement governs every aspect of the arrangement: draw conditions, interest rate, repayment, fees, covenants, default events, and collateral.\n",{"question":409,"answer":410},"What is the difference between a line of credit and a loan agreement?","A loan agreement provides a fixed, lump-sum disbursement that the borrower repays on a set schedule. A line of credit agreement establishes a revolving facility the borrower can draw and repay repeatedly up to the credit limit. Interest on a line of credit accrues only on the outstanding drawn balance, not the full facility amount — making it more flexible and typically cheaper for working-capital needs where the borrower does not need the full amount at once.\n",{"question":412,"answer":413},"Does a line of credit agreement need to be in writing?","Any credit facility above the threshold covered by the Statute of Frauds in the applicable jurisdiction — generally agreements not performable within one year, or involving amounts above a statutory minimum — must be in writing to be enforceable. In practice, all commercial lines of credit should be documented in a signed written agreement regardless of amount. An oral credit arrangement creates significant evidentiary and enforceability problems for both parties.\n",{"question":415,"answer":416},"What interest rate should a line of credit agreement use?","The rate depends on the parties' agreement and market conditions. Commercial bank lines of credit typically price at a floating rate — prime rate plus a spread of 1–4%, or SOFR plus a spread — with a rate floor. Private and intercompany lines often use a fixed rate. The agreement should state the rate explicitly, define the day-count convention (360 or 365 days), and include a fallback mechanism if the reference rate is discontinued. LIBOR must not be used in any new agreements as of 2023.\n",{"question":418,"answer":419},"What collateral is typically required for a business line of credit?","Collateral requirements vary by lender and borrower creditworthiness. Asset-based lines of credit are typically secured by accounts receivable, inventory, or equipment — with availability tied to a borrowing base formula (e.g., 80% of eligible receivables). Unsecured lines rely solely on the borrower's creditworthiness and often require a personal or corporate guarantee. Commercial real estate lines are secured by a deed of trust or mortgage on the property. Whatever collateral is pledged, a UCC-1 financing statement should be filed to perfect the lender's security interest.\n",{"question":421,"answer":422},"What are covenants in a line of credit agreement and why do they matter?","Covenants are contractual promises the borrower makes to the lender while the facility is outstanding. Affirmative covenants require specific actions — delivering quarterly financial statements, maintaining adequate insurance, staying current on taxes. Negative covenants restrict certain actions — taking on additional debt above a threshold, selling material assets, or changing ownership structure without lender consent. Breach of a covenant triggers a default process, typically with a cure period, that can result in acceleration of the full outstanding balance if not remedied.\n",{"question":424,"answer":425},"What happens when a borrower defaults on a line of credit?","When an event of default occurs and is not cured within any applicable cure period, the lender typically has the right to stop funding further draws, accelerate the outstanding balance (making it immediately due in full), and enforce its security interest against pledged collateral. The agreement should specify the notice-and-cure process before acceleration is triggered. In insolvency proceedings, a secured lender with a perfected security interest has priority over unsecured creditors for recovery from the collateral.\n",{"question":427,"answer":428},"Is a personal guarantee required on a business line of credit?","A personal guarantee is not legally required by default but is commonly demanded by lenders when extending credit to newly formed LLCs, thinly capitalized entities, or borrowers without a strong standalone credit history. The guarantee makes one or more individual owners personally liable for the outstanding balance if the business entity defaults. Whether to require one depends on the lender's risk assessment and the borrower's negotiating position.\n",{"question":430,"answer":431},"Do I need a lawyer to prepare a line of credit agreement?","For straightforward facilities between a well-established business borrower and a private lender, a professionally drafted template reviewed by a lawyer is often sufficient. Engage a lawyer directly when the facility exceeds $250,000, when collateral includes real property or complex asset categories, when the borrower operates in a regulated industry, or when the agreement involves cross-border parties subject to different jurisdictions. A 2–4 hour attorney review typically costs $600–$1,500 and is worthwhile for any material facility.\n",[433,437,441,445,449,453],{"industry":434,"icon_asset_id":435,"specifics":436},"Retail and e-commerce","industry-retail","Inventory-secured revolving lines tied to a borrowing base formula — typically 70–80% of eligible finished-goods inventory — used to fund seasonal stock buildup before peak sales periods.",{"industry":438,"icon_asset_id":439,"specifics":440},"Construction and real estate","industry-construction","Draw-down facilities secured by property equity or project receivables, with availability conditions tied to construction milestones and inspector sign-offs.",{"industry":442,"icon_asset_id":443,"specifics":444},"Professional services","industry-professional-services","Unsecured or receivables-backed lines used to bridge payroll and operating expenses between client billing cycles, with covenants tied to accounts receivable aging.",{"industry":446,"icon_asset_id":447,"specifics":448},"Manufacturing","industry-manufacturing","Asset-based lines secured by raw materials, work-in-progress, and finished goods, with borrowing base certificates submitted monthly to confirm available collateral.",{"industry":450,"icon_asset_id":451,"specifics":452},"SaaS and technology","industry-saas","Revenue-based or unsecured credit facilities for growth-stage companies, with covenants focused on MRR growth rate, churn, and cash runway rather than traditional asset coverage.",{"industry":454,"icon_asset_id":455,"specifics":456},"Healthcare","industry-healthtech","Receivables-backed lines secured by Medicare and insurance claim receivables, with special eligibility rules excluding government-program receivables that are subject to assignment restrictions.",[458,461,464,468],{"vs":87,"vs_template_id":459,"summary":460},"loan-agreement-D174","A loan agreement provides a single lump-sum disbursement repaid on a fixed amortization schedule. A line of credit agreement establishes a revolving facility the borrower accesses as needed, paying interest only on the drawn balance. Use a loan agreement for a defined capital expenditure with a predictable repayment timeline; use a line of credit for ongoing working capital needs where funding requirements fluctuate.",{"vs":104,"vs_template_id":462,"summary":463},"promissory-note-D175","A promissory note is a short, unconditional promise to repay a specific sum by a specific date — it documents an existing obligation but does not govern how funds are advanced. A line of credit agreement governs the entire draw-and-repayment lifecycle, covenants, collateral, and default mechanics. A promissory note is sometimes used alongside a line of credit agreement to evidence each individual draw.",{"vs":465,"vs_template_id":466,"summary":467},"Business Credit Application","credit-application-D13639","A credit application is a form the prospective borrower completes so the lender can assess creditworthiness — it is a pre-approval step, not a binding agreement. A line of credit agreement is the binding contract executed after the lender approves the facility. The application precedes the agreement; the agreement governs the funded relationship.",{"vs":135,"vs_template_id":469,"summary":470},"security-agreement-D14005","A security agreement is a standalone document granting the lender a security interest in specific collateral — it is often executed alongside a line of credit agreement for secured facilities. The line of credit agreement governs the credit terms; the security agreement governs the collateral pledge and enforcement rights. For simple facilities, the security interest can be embedded directly in the line of credit agreement rather than documented separately.",{"use_template":472,"template_plus_review":476,"custom_drafted":480},{"best_for":473,"cost":474,"time":475},"Private intercompany lines, small unsecured facilities under $100,000 between known parties","Free","30–60 minutes",{"best_for":477,"cost":478,"time":479},"Secured facilities, lines between $100,000 and $500,000, or facilities with financial covenants","$600–$1,500","2–5 days",{"best_for":481,"cost":482,"time":483},"Institutional lending, facilities above $500,000, regulated industries, or cross-border parties","$2,500–$10,000+","1–4 weeks",[485,490,495,500],{"code":486,"name":487,"flag_asset_id":488,"note":489},"us","United States","flag-us","Article 9 of the Uniform Commercial Code governs security interests in personal property in all 50 states — a UCC-1 financing statement must be filed in the borrower's state of organization to perfect a security interest in accounts receivable, inventory, or equipment. State usury laws cap interest rates on commercial loans; most states exempt business-to-business credit from consumer-rate caps. SOFR has replaced LIBOR as the primary floating-rate benchmark since June 2023. California, New York, and Texas each have specific commercial lending disclosure requirements for facilities under certain thresholds.",{"code":491,"name":492,"flag_asset_id":493,"note":494},"ca","Canada","flag-ca","Security interests in personal property in Canada are governed by each province's Personal Property Security Act (PPSA) — similar in structure to UCC Article 9 but requiring registration in the province where the borrower's collateral is located. The criminal interest rate under the Criminal Code caps effective annual rates at 60% (being revised as of 2024 — verify current statutory limit). Quebec's Civil Code governs security interests in that province through a hypothec rather than a PPSA registration. Interest on business loans must be expressed as an effective annual rate under the Interest Act.",{"code":496,"name":497,"flag_asset_id":498,"note":499},"uk","United Kingdom","flag-uk","Security over company assets in England and Wales must be registered at Companies House within 21 days of creation under the Companies Act 2006 or it is void against a liquidator and creditors. SONIA (Sterling Overnight Index Average) has replaced LIBOR as the benchmark for sterling-denominated floating-rate facilities. Consumer credit lines are regulated by the Financial Conduct Authority under the Consumer Credit Act 1974; business-to-business credit facilities are largely unregulated but must not include unlawful penalty clauses under common law.",{"code":501,"name":502,"flag_asset_id":503,"note":504},"eu","European Union","flag-eu","Security interest registration requirements vary significantly by member state — Germany, France, and the Netherlands each have distinct perfection regimes with different registration bodies and timelines. €STR (Euro Short-Term Rate) has replaced EURIBOR-based LIBOR equivalents for floating-rate euro-denominated facilities. The EU Late Payment Directive sets maximum payment terms and interest rates for commercial transactions; facilities between businesses must comply with national implementing legislation. Cross-border facilities within the EU may trigger tax withholding obligations on interest payments depending on the lender's and borrower's respective jurisdictions.",[245,506,249,507,508,466,509,509,510,511,512,513],"promissory-note-D434","security-agreement-D915","personal-guarantee-D405","secured-lumpsum-promissory-note-agreement-D13041","non-disclosure-agreement-nda-D12692","term-sheet-D473","shareholder-loan-agreement-D13239","accounts-receivable-D308",{"emit_how_to":193,"emit_defined_term":193},{"primary_folder":96,"secondary_folder":516,"document_type":517,"industry":518,"business_stage":519,"tags":520,"confidence":526},"business-financing-and-loans","agreement","general","all-stages",[521,522,523,524,525],"line-of-credit","credit-facility","loan-agreement","lending","collateral",0.95,"\u003Ch2>What is a Line of Credit Agreement?\u003C/h2>\n\u003Cp>A \u003Cstrong>Line of Credit Agreement\u003C/strong> is a legally binding contract between a lender and a borrower that establishes a credit facility — typically revolving — up to a defined maximum amount called the credit limit. Unlike a term loan that disburses a fixed lump sum, a line of credit allows the borrower to draw funds as needed, repay them, and draw again throughout the facility term, with interest accruing only on the outstanding balance at any given time. The agreement governs every dimension of this relationship: how draws are requested and funded, what interest rate applies and how it is calculated, when and how repayments are made, what financial covenants the borrower must maintain, what events trigger a default, and what collateral secures the lender's position. This free Word download gives businesses and private lenders a professionally structured starting point that covers all of these elements and can be edited online and exported as a signed PDF in under an hour.\u003C/p>\n\u003Ch2>Why You Need This Document\u003C/h2>\n\u003Cp>Operating a credit facility without a signed agreement exposes both parties to serious, concrete risks. A lender advancing funds without documented draw conditions, repayment terms, and default rights has no legal basis to demand repayment ahead of maturity or to enforce collateral claims — leaving recovery entirely dependent on the borrower's goodwill. A borrower drawing on an undocumented line has no protection against arbitrary rate changes, unexpected fee charges, or unilateral facility cancellation. When the relationship sours — and with credit facilities, disputes over interest calculations, re-draw rights, and covenant compliance are common — neither party has a signed document to rely on. Courts treat undocumented credit arrangements as either unenforceable or subject to jurisdiction-specific default rules that rarely reflect what either party intended. A signed Line of Credit Agreement eliminates all of that ambiguity, creates enforceable obligations on both sides, and gives the lender the perfected security interest needed to recover ahead of other creditors if the borrower becomes insolvent.\u003C/p>\n",1781185999718]