[{"data":1,"prerenderedAt":482},["ShallowReactive",2],{"document-request-proposal-for-credit-facility-D298":3},{"document":4,"label":23,"preview":11,"thumb":24,"description":5,"descriptionCustom":6,"apiDescription":5,"pages":8,"extension":10,"parents":25,"breadcrumb":29,"related":35,"customDescModule":176,"customdescription":6,"mdFm":177,"mdProseHtml":481},{"description":5,"descriptionCustom":6,"label":7,"pages":8,"size":9,"extension":10,"preview":11,"thumb":12,"svgFrame":13,"seoMetadata":14,"parents":16,"keywords":15},"[DATE] [CONTACT NAME] [ADDRESS] [ADDRESS 2] [CITY, STATE/PROVINCE] [ZIP/POSTAL CODE] SUBJECT: REQUEST PROPOSAL FOR CREDIT FACILITY Dear [Contact name], It was a pleasure speaking with you on [DAY]. As discussed in our recent telephone conversation, I contacted you regarding our company's credit and banking requirements. [COMPANY] is growing company in the [INDUSTRY] sector. In the past [MONTHS/YEARS], our revenues increased by [%]; in the meanwhile, we welcomed [NUMBER] new employees. Obviously, we have correspondingly increasing capital requirements to sustain such a growth. ",null,"Request Proposal for Credit Facility","1",513,"doc","https://templates.business-in-a-box.com/imgs/1000px/request-proposal-for-credit-facility-D298.png","https://templates.business-in-a-box.com/imgs/250px/298.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#298.xml",{"title":15,"description":6},"request proposal for credit facility",[17,20],{"label":18,"url":19},"Finance & Accounting","/templates/finance-accounting/",{"label":21,"url":22},"Business Banking","/templates/business-banking/","Request Proposal for Credit Facility Template","https://templates.business-in-a-box.com/imgs/400px/298.png",[26,17,20],{"label":27,"url":28},"Templates","/templates/",[30,31,32],{"label":27,"url":28},{"label":18,"url":19},{"label":33,"url":34},"Business Financing & Loans","/templates/business-financing-and-loans/",[36,40,44,48,52,56,60,64,68,72,76,80,84,99,113,129,145,161],{"label":37,"url":38,"thumb":39,"extension":10},"Request for Proposal","/template/request-for-proposal-D1270","https://templates.business-in-a-box.com/imgs/250px/1270.png",{"label":41,"url":42,"thumb":43,"extension":10},"Credit Information Request","/template/credit-information-request-D259","https://templates.business-in-a-box.com/imgs/250px/259.png",{"label":45,"url":46,"thumb":47,"extension":10},"Request for Credit Information","/template/request-for-credit-information-D276","https://templates.business-in-a-box.com/imgs/250px/276.png",{"label":49,"url":50,"thumb":51,"extension":10},"Reply to Request About Credit Rejection","/template/reply-to-request-about-credit-rejection-D275","https://templates.business-in-a-box.com/imgs/250px/275.png",{"label":53,"url":54,"thumb":55,"extension":10},"Bid Proposal","/template/bid-proposal-D12677","https://templates.business-in-a-box.com/imgs/250px/12677.png",{"label":57,"url":58,"thumb":59,"extension":10},"Business Proposal","/template/business-proposal-D1258","https://templates.business-in-a-box.com/imgs/250px/1258.png",{"label":61,"url":62,"thumb":63,"extension":10},"Event Proposal","/template/event-proposal-D12823","https://templates.business-in-a-box.com/imgs/250px/12823.png",{"label":65,"url":66,"thumb":67,"extension":10},"Project Proposal","/template/project-proposal-D12678","https://templates.business-in-a-box.com/imgs/250px/12678.png",{"label":69,"url":70,"thumb":71,"extension":10},"Proposal for Services","/template/proposal-for-services-D1268","https://templates.business-in-a-box.com/imgs/250px/1268.png",{"label":73,"url":74,"thumb":75,"extension":10},"Sales Proposal","/template/sales-proposal-D1272","https://templates.business-in-a-box.com/imgs/250px/1272.png",{"label":77,"url":78,"thumb":79,"extension":10},"SEO Proposal","/template/seo-proposal-D12874","https://templates.business-in-a-box.com/imgs/250px/12874.png",{"label":81,"url":82,"thumb":83,"extension":10},"Sponsorship Proposal","/template/sponsorship-proposal-D12680","https://templates.business-in-a-box.com/imgs/250px/12680.png",{"description":85,"descriptionCustom":6,"label":86,"pages":8,"size":9,"extension":10,"preview":87,"thumb":88,"svgFrame":89,"seoMetadata":90,"parents":92,"keywords":91,"url":98},"[DATE] [CONTACT NAME] [ADDRESS] [ADDRESS 2] [CITY, STATE/PROVINCE] [ZIP/POSTAL CODE] SUBJECT: FUNDING REQUEST FOR [COMPANY NAME] Dear [RECIPIENT'S NAME], I hope this letter finds you well. I am writing on behalf of [YOUR ORGANIZATION] to request financial support for our [PROJECT/INITIATIVE NAME]. We believe that this initiative has the potential to create a significant and positive impact, and we are seeking funding to help us achieve our goals. We have attached our completed Funding Request Form for your review, which includes detailed information about the project, the budget breakdown, and the amount of funding we are requesting. The form also outlines the need for this funding, the anticipated impact, and our sustainability plan. We have taken great care to provide a comprehensive overview of our project and how the funds will be utilized to meet our objectives.","Funding Request Letter","https://templates.business-in-a-box.com/imgs/1000px/funding-request-letter-D13697.png","https://templates.business-in-a-box.com/imgs/250px/13697.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#13697.xml",{"title":91,"description":6},"funding request letter",[93,95],{"label":18,"url":94},"finance-accounting",{"label":96,"url":97},"Raising Capital","raising-capital","/template/funding-request-letter-D13697",{"description":100,"descriptionCustom":6,"label":101,"pages":8,"size":9,"extension":10,"preview":102,"thumb":103,"svgFrame":104,"seoMetadata":105,"parents":107,"keywords":106,"url":112},"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] ","Credit Note","https://templates.business-in-a-box.com/imgs/1000px/credit-note-D13639.png","https://templates.business-in-a-box.com/imgs/250px/13639.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#13639.xml",{"title":106,"description":6},"credit note",[108,111],{"label":109,"url":110},"Credit & Collection","credit-collection",{"label":109,"url":110},"/template/credit-note-D13639",{"description":114,"descriptionCustom":6,"label":115,"pages":116,"size":9,"extension":10,"preview":117,"thumb":118,"svgFrame":119,"seoMetadata":120,"parents":122,"keywords":121,"url":128},"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":121,"description":6},"loan agreement",[123,124,127],{"label":18,"url":94},{"label":125,"url":126},"Business Loans","business-loan",{"label":125,"url":126},"/template/loan-agreement-D417",{"description":130,"descriptionCustom":6,"label":131,"pages":132,"size":9,"extension":10,"preview":133,"thumb":134,"svgFrame":135,"seoMetadata":136,"parents":138,"keywords":143,"url":144},"[DATE] [CONTACT NAME] [ADDRESS] [ADDRESS 2] [CITY, STATE/PROVINCE] [ZIP/POSTAL CODE] SUBJECT: LETTER OF INTENT-ACQUISITION OF BUSINESS Dear [CONTACT NAME]: This letter (\"Letter of Intent\") sets forth the basic preliminary terms between the Buyer or his nominee and yourselves regarding the purchase of the [SPECIFY] business (the \"Business\") carried on by yourselves. Except as specifically set forth herein, this Letter of Intent shall not constitute an agreement between the parties and no agreement shall be deemed to exist until execution of a definitive purchase agreement. It is proposed that Buyer will acquire certain assets of the Business which Buyer believes to be necessary to the future of the Business, including the warehouse in [CITY/STATE] in which [COMPANY NAME] the Company has invested [AMOUNT] in cash and which has been financed by a mortgage loan of approximately [AMOUNT] granted by the [SPECIFY COMPANY] [CITY/STATE]. Buyer understands that the said warehouse has no other charges or liabilities affecting it other than the said mortgage loan. Buyer may either purchase the warehouse outright or enter into a lease-purchase or instalment transfer of ownership which is satisfactory to both parties. The gross purchase price for the said warehouse will be [AMOUNT]. Buyer may purchase or lease barrels and other equipment currently owned by the Company which are necessary to operate the Business, on a cash or instalment basis agreeable to both parties. The specific assets to be purchased and the amounts to be paid by Buyer in connection with this transaction remain to be negotiated by the parties. This Letter of Intent also evidences the intentions of the parties with respect to the following agreements: Buyer will enter into a [NUMBER]-year employment agreement with [COMPANY NAME], providing for the Company will be responsible for the purchase of [SPECIFY] for Buyer. The agreement will contain the customary terms and conditions found in employment agreements in similar transactions and will provide for the usual non-competition and non-solicitation covenants to be entered into by the Company in favour of Buyer. It is expressly understood that if the contemplated transaction is consummated, the aggregate amount of commission paid or payable to yourselves (net of reasonable expenses acceptable to Buyer) in respect of all purchases of [SPECIFY] made through you from the date of this Letter of Intent to the date of closing, with the exception of commissions earned on the [NUMBER] truckloads of [SPECIFY] to be delivered to Buyer during the week of [DATE] to [DATE], will be applied against remuneration payable to the Company in the first year of his employment agreement. If the contemplated transaction is not consummated, all such commissions paid or payable will be treated as commissions. Buyer will enter into a [NUMBER]-year employment agreement with [EMPLOYEE NAME], providing for the payment of a gross base salary of [ANNUAL SALARY] per year, to be paid weekly, subject to annual review. [EMPLOYEE NAME] will be President of the Business and the employment agreement will provide for health benefits, automobile, expenses and bonus arrangements","Letter of Intent_Acquisition of Business","3","https://templates.business-in-a-box.com/imgs/1000px/letter-of-intent_acquisition-of-business-D5197.png","https://templates.business-in-a-box.com/imgs/250px/5197.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#5197.xml",{"title":137,"description":6},"letter of intent_acquisition of business",[139,142],{"label":140,"url":141},"Legal Agreements","business-legal-agreements",{"label":140,"url":141},"letter intent_acquisition business","/template/letter-of-intent_acquisition-of-business-D5197",{"description":146,"descriptionCustom":6,"label":147,"pages":132,"size":148,"extension":10,"preview":149,"thumb":150,"svgFrame":151,"seoMetadata":152,"parents":153,"keywords":159,"url":160},"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},[154,155,156],{"label":18,"url":94},{"label":125,"url":126},{"label":157,"url":158},"Promissory Notes","promisory-note","promissory note","/template/promissory-note-D434",{"description":162,"descriptionCustom":6,"label":163,"pages":116,"size":9,"extension":10,"preview":164,"thumb":165,"svgFrame":166,"seoMetadata":167,"parents":169,"keywords":168,"url":175},"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":168,"description":6},"personal guarantee",[170,171,172],{"label":18,"url":94},{"label":125,"url":126},{"label":173,"url":174},"Guaranties & Collateral","guaranties-collateral","/template/personal-guarantee-D405",false,{"seo":178,"reviewer":190,"quick_facts":194,"at_a_glance":196,"personas":200,"variants":225,"glossary":251,"clauses":282,"how_to_fill":333,"common_mistakes":369,"faqs":386,"industries":414,"comparisons":431,"diy_vs_pro":445,"related_template_ids_curated":458,"schema":467,"classification":469},{"meta_title":179,"meta_description":180,"primary_keyword":181,"secondary_keywords":182},"Request for Proposal for Credit Facility Template | BIB","Free RFP for credit facility template. Invite lenders to bid on a credit line with structured terms, security details, and evaluation criteria.","request for proposal for credit facility",[183,184,185,186,187,188,189],"credit facility rfp template","rfp credit facility letter","credit facility proposal letter template","request for proposal credit line","bank credit facility rfp","credit facility solicitation letter","business credit facility rfp template word",{"name":191,"credential":192,"reviewed_date":193},"Bruno Goulet","CEO, Business in a Box","2026-05-02",{"difficulty":195,"legal_review_recommended":176,"signature_required":176},"medium",{"what_it_is":197,"when_you_need_it":198,"whats_inside":199},"A Request for Proposal for Credit Facility is a formal letter a company sends to one or more lenders inviting them to submit competing proposals for a credit line or loan facility. This free Word download gives you a structured, professional starting point — covering company background, facility size and purpose, proposed security, and evaluation criteria — that you can edit online and send to banks or alternative lenders in under an hour.\n","Use it when your business needs to raise debt financing and wants to run a competitive lender process rather than negotiating with a single bank. It is particularly useful when refinancing an existing facility, expanding a revolving credit line, or securing project-specific financing.\n","Company overview and financials summary, facility type and size, intended use of proceeds, proposed collateral or security package, lender qualification criteria, proposal format requirements, and submission deadline with evaluation timeline.\n",[201,205,209,213,217,221],{"title":202,"use_case":203,"icon_asset_id":204},"CFOs and finance directors","Running a competitive lender RFP to secure the best credit terms","persona-cfo",{"title":206,"use_case":207,"icon_asset_id":208},"Small business owners","Approaching multiple banks for a business credit line or term loan","persona-small-business-owner",{"title":210,"use_case":211,"icon_asset_id":212},"Real estate developers","Soliciting construction or bridge financing proposals from lenders","persona-real-estate-developer",{"title":214,"use_case":215,"icon_asset_id":216},"Startup founders","Seeking a venture debt facility to extend runway without equity dilution","persona-startup-founder",{"title":218,"use_case":219,"icon_asset_id":220},"Operations directors","Sourcing a revolving credit line to fund seasonal working capital needs","persona-operations-director",{"title":222,"use_case":223,"icon_asset_id":224},"Private equity portfolio managers","Arranging acquisition financing or recapitalization credit for a portfolio company","persona-private-equity-manager",[226,230,233,237,241,244,248],{"situation":227,"recommended_template":228,"slug":229},"Seeking a revolving credit line for working capital","Request for Proposal for Credit Facility (Revolving)","request-proposal-for-credit-facility-D298",{"situation":231,"recommended_template":232,"slug":229},"Refinancing an existing term loan at better rates","Request for Proposal for Credit Facility",{"situation":234,"recommended_template":235,"slug":236},"Requesting a loan from a single known lender","Loan Request Letter","funding-request-letter-D13697",{"situation":238,"recommended_template":239,"slug":240},"Formally proposing loan terms to a bank","Loan Proposal","credit-note-D13639",{"situation":242,"recommended_template":115,"slug":243},"Documenting agreed credit terms after lender selection","loan-agreement-D417",{"situation":245,"recommended_template":246,"slug":247},"Requesting a mortgage facility for commercial real estate","Commercial Mortgage Application Letter","application-policy-D13439",{"situation":249,"recommended_template":250,"slug":236},"Notifying a lender of intent to repay early","Loan Payoff Request Letter",[252,255,258,261,264,267,270,273,276,279],{"term":253,"definition":254},"Credit Facility","A pre-approved borrowing arrangement between a lender and a borrower that allows the borrower to draw funds up to a set limit under agreed terms.",{"term":256,"definition":257},"Revolving Credit Line","A facility where the borrower can draw, repay, and re-draw funds repeatedly up to the credit limit during the facility's term.",{"term":259,"definition":260},"Term Loan","A lump-sum loan disbursed at closing and repaid in scheduled installments over a fixed period, typically 1–10 years.",{"term":262,"definition":263},"Security / Collateral","Assets pledged by the borrower to the lender as protection against default — commonly accounts receivable, inventory, equipment, or real property.",{"term":265,"definition":266},"Commitment Fee","A fee charged by the lender on the undrawn portion of a credit facility, typically expressed as an annual percentage.",{"term":268,"definition":269},"DSCR (Debt Service Coverage Ratio)","Net operating income divided by total annual debt service — lenders typically require a DSCR of at least 1.25× to approve a facility.",{"term":271,"definition":272},"Covenant","A contractual obligation in a loan agreement requiring the borrower to maintain certain financial ratios or operating conditions throughout the facility's term.",{"term":274,"definition":275},"Drawdown","A single disbursement of funds from an approved credit facility, made at the borrower's request subject to drawdown conditions.",{"term":277,"definition":278},"Intercreditor Agreement","An agreement among multiple lenders that establishes the priority of their respective security interests and repayment claims.",{"term":280,"definition":281},"Mandate Letter","A document issued by the borrower to the selected lender authorizing it to arrange and underwrite the credit facility on agreed terms.",[283,288,293,298,303,308,313,318,323,328],{"name":284,"plain_english":285,"sample_language":286,"common_mistake":287},"Opening and purpose statement","Identifies the company, states that the letter is a formal RFP, and summarizes the type and size of facility being sought.","[COMPANY LEGAL NAME] ('the Company') invites you to submit a proposal for a [FACILITY TYPE] credit facility of up to [CURRENCY AND AMOUNT]. The Company is seeking competitive proposals from qualified lenders by [SUBMISSION DEADLINE].","Opening with company history rather than the facility ask. Lenders want to know the size and type of facility in the first paragraph — burying it further down causes proposals to miss key parameters.",{"name":289,"plain_english":290,"sample_language":291,"common_mistake":292},"Company overview and financial summary","Provides a brief description of the business, its industry, years in operation, and headline financial metrics that establish creditworthiness.","Founded in [YEAR], the Company is a [INDUSTRY] business headquartered in [CITY, STATE/PROVINCE] with annual revenue of approximately [AMOUNT] and EBITDA of [AMOUNT] for the fiscal year ended [DATE]. Audited financial statements for the past [X] years are enclosed as Exhibit A.","Providing unaudited or internally prepared financials without labeling them as such. Lenders who discover the basis of preparation later in diligence lose confidence in the borrower's transparency.",{"name":294,"plain_english":295,"sample_language":296,"common_mistake":297},"Facility type and size","Specifies whether the facility is a revolving line, term loan, or combination, the maximum commitment amount, and the desired draw structure.","The Company is seeking a [revolving credit facility / term loan / combined facility] with a total commitment of [CURRENCY AND AMOUNT]. Drawdowns will be required in minimum tranches of [AMOUNT] on [X] business days' notice.","Stating only a total commitment amount without specifying whether the facility is revolving or amortizing. This forces lenders to make incompatible pricing assumptions, producing proposals that are impossible to compare.",{"name":299,"plain_english":300,"sample_language":301,"common_mistake":302},"Purpose and use of proceeds","Explains exactly how the borrowed funds will be used — working capital, capital expenditure, acquisition financing, or refinancing — so lenders can assess the risk profile.","Proceeds will be used for the following purposes: (a) [PURPOSE 1], estimated [AMOUNT]; (b) [PURPOSE 2], estimated [AMOUNT]; and (c) general corporate working capital, up to [AMOUNT]. No proceeds will be used to fund dividends or shareholder distributions without lender consent.","Describing the use of proceeds as 'general business purposes' without further detail. Lenders price risk based on how funds are deployed — vague descriptions result in conservative (i.e., more expensive) pricing assumptions.",{"name":304,"plain_english":305,"sample_language":306,"common_mistake":307},"Proposed security package","Describes the collateral the company is prepared to offer, including the assets involved, their approximate value, and any existing encumbrances.","The Company proposes to offer security comprising: (a) a first-ranking charge over all present and after-acquired personal property; (b) an assignment of accounts receivable currently valued at approximately [AMOUNT]; and (c) a [first / second] mortgage over the property located at [ADDRESS], with an appraised value of [AMOUNT] as of [DATE].","Offering security without disclosing existing charges or liens against the same assets. Lenders will discover encumbrances in title and PPSA/UCC searches — undisclosed prior charges delay or derail the process.",{"name":309,"plain_english":310,"sample_language":311,"common_mistake":312},"Financial covenants and conditions","Indicates the covenants the company is willing to accept — or proposes to negotiate — such as minimum DSCR, maximum leverage ratio, and reporting obligations.","The Company expects standard financial covenants including, but not limited to: (a) minimum DSCR of [X]×, tested [quarterly / semi-annually]; (b) maximum total debt to EBITDA of [X]×; and (c) delivery of quarterly management accounts within [X] days of period end and audited annual financial statements within [X] days of fiscal year end.","Proposing no covenants at all in an attempt to appear low-risk. Lenders view the absence of any proposed covenants as a negotiating tactic and respond with tighter terms — proposing reasonable starting points demonstrates financial maturity.",{"name":314,"plain_english":315,"sample_language":316,"common_mistake":317},"Proposal requirements and format","Instructs lenders on exactly what their proposal must contain — pricing, fees, term sheet, and any credit approval conditionality — so responses are comparable.","Proposals must include: (a) indicative interest rate or spread, and the reference rate to which it applies; (b) commitment and arrangement fees; (c) proposed term and amortization schedule; (d) key covenants; (e) security requirements; (f) conditions precedent to drawdown; and (g) any credit approval conditions or credit committee requirements.","Not requiring lenders to disclose credit approval conditionality. A proposal that looks attractive may be subject to credit committee approval that significantly changes the terms — requiring disclosure upfront avoids late-stage surprises.",{"name":319,"plain_english":320,"sample_language":321,"common_mistake":322},"Evaluation criteria","States the factors on which proposals will be scored — not just price — so lenders understand that relationship, speed, and flexibility also matter.","Proposals will be evaluated on the following criteria: (a) all-in cost of the facility (pricing, fees, and charges); (b) lender's experience in [INDUSTRY] or comparable transactions; (c) flexibility of drawdown and repayment mechanics; (d) speed to credit approval and close; and (e) covenant structure and ongoing reporting requirements.","Stating that the lowest price wins without listing other criteria. This triggers a race to the bottom on pricing, sometimes attracting lenders who compensate with restrictive covenants or onerous fees disclosed only in the term sheet.",{"name":324,"plain_english":325,"sample_language":326,"common_mistake":327},"Submission deadline and process","Sets a firm deadline for proposal submission, names the contact to whom proposals should be sent, and outlines the next steps after the deadline.","Proposals must be submitted in writing to [CONTACT NAME], [TITLE], at [EMAIL ADDRESS] no later than [TIME] on [DATE]. Shortlisted lenders will be invited to a meeting during the week of [DATE]. The Company expects to issue a mandate letter to the selected lender by [DATE], with a target facility close of [DATE].","Omitting a mandate and close target date. Without a stated timeline, lenders treat the process as non-urgent and deprioritize their response — publishing a close target creates competitive pressure to respond promptly.",{"name":329,"plain_english":330,"sample_language":331,"common_mistake":332},"Confidentiality and disclaimer","Notifies lenders that the information in the RFP is confidential, that the company is not obligated to accept any proposal, and that the RFP does not constitute a binding commitment.","The information contained in this RFP is confidential and provided solely for the purpose of preparing a proposal. Receipt of this RFP does not obligate the Company to accept any proposal or to proceed with any financing. The Company reserves the right to reject any or all proposals, to negotiate with multiple lenders simultaneously, and to terminate this process at any time without liability.","Omitting the non-binding disclaimer entirely. Without it, a lender that incurs costs preparing a detailed proposal may assert reliance-based claims if the process is terminated — even where no contract was formed.",[334,339,344,349,354,359,364],{"step":335,"title":336,"description":337,"tip":338},1,"Enter your company's legal name and contact details","Replace the placeholder with your registered legal entity name, head office address, and the name and title of the finance contact managing the process. These appear in the opening paragraph and the submission-deadline clause.","Use the same legal name that appears on your financial statements — lenders will cross-reference it in corporate registry and credit bureau searches.",{"step":340,"title":341,"description":342,"tip":343},2,"Define the facility type and total commitment amount","Choose between a revolving credit line, term loan, or combined structure, and enter the maximum facility size in the appropriate currency. Be specific: '$5,000,000 revolving credit facility' is clearer than 'up to $5M.'","If you are open to either structure, say so explicitly and invite lenders to propose the structure they believe best suits your profile — this generates more creative responses.",{"step":345,"title":346,"description":347,"tip":348},3,"Describe the use of proceeds with dollar estimates","List each intended use with an approximate dollar allocation. Common categories include working capital, equipment purchase, real estate acquisition, refinancing an existing facility, or acquisition financing.","If any portion of the proceeds will refinance existing debt, name the current lender and the outstanding balance — this reassures lenders you are not in financial distress.",{"step":350,"title":351,"description":352,"tip":353},4,"Document the proposed security package","List each asset class you are prepared to offer as collateral with current appraised or book values. If any assets already carry a charge, disclose the lender's name and the outstanding balance secured.","Prepare a current accounts-receivable aging report before sending the RFP — lenders will ask for it as part of due diligence and having it ready signals operational readiness.",{"step":355,"title":356,"description":357,"tip":358},5,"Set the submission deadline and process timeline","Enter a specific submission deadline — at least 10 business days from the date you send the RFP — along with the shortlist meeting week, mandate letter date, and target close date.","Send the RFP to at least three lenders to generate genuine competitive tension; fewer than three and lenders assume the process is a formality for a pre-selected bank.",{"step":360,"title":361,"description":362,"tip":363},6,"Attach supporting financial exhibits","Reference your audited financial statements (last 2–3 years), current year-to-date management accounts, and any existing facility term sheets as labeled exhibits in the letter.","Number each exhibit and reference it by number in the relevant clause — 'audited financial statements are enclosed as Exhibit A' — so lenders can quickly locate supporting data.",{"step":365,"title":366,"description":367,"tip":368},7,"Review the confidentiality and disclaimer clause before sending","Confirm the non-binding language in the final clause accurately reflects your intentions: you are not obligated to accept any proposal and may terminate the process at any time.","If you are running this process with the assistance of a financial advisor or arranger, add their name and role in the opening paragraph so lenders direct technical questions to the right contact.",[370,374,378,382],{"mistake":371,"why_it_matters":372,"fix":373},"Sending the RFP to only one lender","A single-lender process removes all competitive pressure, resulting in pricing and terms that reflect the lender's preferences rather than market rates.","Approach a minimum of three lenders — ideally a mix of your relationship bank, a regional competitor, and a non-bank lender — to generate genuine competing proposals.",{"mistake":375,"why_it_matters":376,"fix":377},"Omitting the non-binding disclaimer","Without a clear statement that the RFP creates no obligation to proceed, lenders who incur significant preparation costs may assert reliance-based claims if you abandon the process.","Include the confidentiality and disclaimer clause verbatim and confirm that the company reserves the right to reject all proposals and terminate the process at any time.",{"mistake":379,"why_it_matters":380,"fix":381},"Providing unaudited financials without disclosing their basis of preparation","Lenders who discover mid-process that statements are internally prepared rather than audited lose confidence in the borrower's credibility and may reprice or withdraw.","Label all financial statements with their basis of preparation — 'audited by [FIRM NAME]' or 'management-prepared, unaudited' — and provide the most recent audited statements available even if they are a year old.",{"mistake":383,"why_it_matters":384,"fix":385},"Setting an unrealistically short submission deadline","A deadline of fewer than 5 business days signals to lenders that the process is not serious, or that the borrower is in financial difficulty and needs emergency funding.","Allow at least 10 business days from dispatch to proposal deadline. If your timeline is genuinely compressed, explain the reason in the opening paragraph so lenders understand the urgency.",[387,390,393,396,399,402,405,408,411],{"question":388,"answer":389},"What is a request for proposal for a credit facility?","A request for proposal (RFP) for a credit facility is a formal letter a company sends to one or more lenders inviting them to submit competing proposals for a credit line or loan. It describes the borrower's business and financials, the type and size of facility required, the proposed security package, and the criteria and deadline for proposal submission. Running an RFP process creates competitive tension among lenders and typically results in better pricing and terms than negotiating with a single bank.\n",{"question":391,"answer":392},"When should I use an RFP for a credit facility instead of a direct loan application?","Use an RFP when you want to compare proposals from multiple lenders rather than accepting the first offer from your relationship bank. It is particularly effective when refinancing an existing facility at maturity, when your credit profile has improved and you believe you can command better terms, or when the facility is large enough ($1M or more) that the time investment in a competitive process is justified by potential interest savings.\n",{"question":394,"answer":395},"How many lenders should I send the RFP to?","Three to five lenders is the typical range for a mid-market credit RFP. Fewer than three removes the competitive dynamic; more than five creates significant administrative burden and signals to lenders that the process lacks seriousness. Include your primary relationship bank, at least one competing bank, and consider a non-bank lender (credit fund or specialty finance company) to benchmark the full market.\n",{"question":397,"answer":398},"What information should I attach to the credit facility RFP?","At minimum: audited financial statements for the past two to three years, current year-to-date management accounts, an organizational chart showing the legal structure of the borrower and any guarantors, a schedule of existing debt and security, and any relevant asset appraisals. For asset-based facilities, include a current accounts-receivable aging report and inventory schedule. The more complete the package, the faster lenders can issue a substantive proposal.\n",{"question":400,"answer":401},"Does an RFP for a credit facility obligate me to accept any proposal?","No — a properly drafted RFP explicitly states that the company is not obligated to accept any proposal and reserves the right to terminate the process at any time without liability. This non-binding disclaimer is standard and expected by lenders. You are free to negotiate with multiple lenders simultaneously, reject all proposals, or abandon the process if market terms do not meet your requirements.\n",{"question":403,"answer":404},"How long does a credit facility RFP process typically take?","A typical timeline runs 6 to 10 weeks from RFP dispatch to facility close. Allow 10 to 15 business days for lenders to submit proposals, 1 to 2 weeks for shortlisting and lender meetings, 1 week to issue a mandate letter to the selected lender, and 3 to 4 weeks for legal documentation, due diligence, and funding. Complex or large facilities may take 12 to 16 weeks.\n",{"question":406,"answer":407},"What is the difference between an RFP for a credit facility and a loan proposal?","An RFP is sent by the borrower to invite lenders to compete — the borrower sets the terms of the process and evaluates competing offers. A loan proposal is typically prepared by the borrower (or a lender) to present a specific financing request to a single institution. An RFP creates a competitive market process; a loan proposal is a direct application or pitch to one lender.\n",{"question":409,"answer":410},"Should I hire a financial advisor to run a credit facility RFP?","For facilities above $5 million or in specialized sectors (real estate, project finance, leveraged buyouts), engaging a financial advisor or arranger adds value by identifying the right lender universe, managing the process, and negotiating term sheet details. For smaller facilities, a well-prepared RFP template combined with direct lender relationships is typically sufficient and avoids the 0.5–1% arrangement fee a third-party advisor charges.\n",{"question":412,"answer":413},"What should I do after receiving proposals from lenders?","Create a comparison table with one row per lender and one column per key term: interest rate, reference rate, commitment fee, arrangement fee, key covenants, security requirements, and approval conditionality. Shortlist the top two or three lenders for follow-up meetings, negotiate on the points where proposals differ most, and then issue a mandate letter to your selected lender before beginning legal documentation.\n",[415,419,423,427],{"industry":416,"icon_asset_id":417,"specifics":418},"Real estate and construction","industry-real-estate","Construction draw facilities with milestone-based drawdowns, loan-to-value covenants tied to independent appraisals, and interest-reserve requirements built into the facility size.",{"industry":420,"icon_asset_id":421,"specifics":422},"Manufacturing","industry-manufacturing","Asset-based revolving lines secured against accounts receivable and inventory, with borrowing base certificates required at each drawdown and monthly collateral audits.",{"industry":424,"icon_asset_id":425,"specifics":426},"Retail and e-commerce","industry-retail","Seasonal revolving credit lines that expand in Q3 and Q4 to fund inventory build, with automatic step-downs after peak season to reduce commitment fees.",{"industry":428,"icon_asset_id":429,"specifics":430},"Professional services","industry-professional-services","Unsecured or lightly secured working capital lines based on accounts receivable quality, with DSCR and days-sales-outstanding covenants as the primary credit metrics.",[432,435,438,441],{"vs":235,"vs_template_id":433,"summary":434},"loan-request-letter-D13558","A loan request letter is a direct application to a single lender asking for specific financing terms. An RFP for a credit facility is sent to multiple lenders simultaneously to generate competing proposals. Use a loan request letter when you have a strong existing relationship and are confident in the terms; use the RFP when you want market competition to drive the best outcome.",{"vs":239,"vs_template_id":436,"summary":437},"loan-proposal-D12012","A loan proposal is prepared by the borrower (or lender) to present a specific financing structure to a single institution, typically further along in a negotiation. The RFP is an earlier-stage document designed to solicit proposals from multiple lenders before any terms are agreed. The RFP precedes and informs the loan proposal that follows with the selected lender.",{"vs":115,"vs_template_id":439,"summary":440},"loan-agreement-D154","A loan agreement is the binding legal contract executed at close that documents the agreed facility terms, covenants, events of default, and security. The RFP is a non-binding solicitation letter that initiates the process. The RFP comes first; the loan agreement is the final output once a lender is selected and terms are negotiated.",{"vs":442,"vs_template_id":443,"summary":444},"Letter of Intent (Financing)","letter-of-intent-D11940","A letter of intent in a financing context is issued by the borrower to the selected lender to confirm mutual intent to proceed on agreed headline terms — it follows the RFP and lender selection. The RFP is addressed to multiple lenders at once; the letter of intent is addressed to one lender after the competitive process concludes.",{"use_template":446,"template_plus_review":450,"custom_drafted":454},{"best_for":447,"cost":448,"time":449},"Business owners and finance teams sourcing a standard credit facility up to $5M from relationship banks","Free","1–2 hours to complete and send",{"best_for":451,"cost":452,"time":453},"Companies seeking facilities above $2M, non-standard security packages, or lenders outside their existing relationships","$300–$800 for a CFO advisor or accountant review","1–2 days",{"best_for":455,"cost":456,"time":457},"Large or complex facilities above $10M, syndicated credit, project finance, or leveraged acquisitions","$3,000–$15,000+ for a financial advisor or arranger","1–3 weeks",[236,240,243,459,460,461,462,463,464,465,240,466],"letter-of-intent_acquisition-of-business-D5197","promissory-note-D434","personal-guarantee-D405","security-agreement-D915","financial-projections_12-months-D360","business-plan-canvas-(one-page)-D12527","non-disclosure-agreement-nda-D12692","purchase-order-D1411",{"emit_how_to":468,"emit_defined_term":468},true,{"primary_folder":94,"secondary_folder":470,"document_type":471,"industry":472,"business_stage":473,"tags":474,"confidence":480},"business-financing-and-loans","letter","general","all-stages",[475,476,477,478,479],"fundraising","loan","lender","credit-facility","rfp",0.92,"\u003Ch2>What is a Request for Proposal for Credit Facility?\u003C/h2>\n\u003Cp>A \u003Cstrong>Request for Proposal for Credit Facility\u003C/strong> is a formal letter a company sends to one or more lenders inviting them to submit competing proposals for a credit line, term loan, or combined facility. It describes the borrowing company's business, financial profile, and the type and size of facility required, then specifies the security on offer, the covenants the company expects, the format lenders must follow in their proposals, and a firm submission deadline. Unlike a direct loan application, an RFP is addressed to multiple lenders simultaneously — creating a competitive process that gives the borrower meaningful leverage in pricing and terms negotiations.\u003C/p>\n\u003Ch2>Why You Need This Document\u003C/h2>\n\u003Cp>Companies that negotiate with a single bank typically accept whatever terms that bank offers, simply because they have nothing to compare them against. A well-structured credit facility RFP changes that dynamic: when three to five lenders are competing for the same mandate, interest rates tighten, fees compress, and covenant packages become more borrower-friendly. Without a formal RFP, lenders also lack the structured information they need to issue a substantive proposal quickly — vague conversations lead to indicative terms that fall apart in due diligence and delay close by weeks. This template gives your finance team a professional, complete document that signals to lenders you are running a serious, organized process — and serious borrowers attract better lenders at better prices.\u003C/p>\n",1778773564503]