[{"data":1,"prerenderedAt":530},["ShallowReactive",2],{"document-revolving-credit-agreement-D14051":3},{"document":4,"label":21,"preview":11,"thumb":22,"thumb600":23,"description":5,"descriptionCustom":6,"apiDescription":5,"pages":8,"extension":10,"parents":24,"breadcrumb":28,"related":36,"customDescModule":178,"customdescription":6,"mdFm":179,"mdProseHtml":529},{"description":5,"descriptionCustom":6,"label":7,"pages":8,"size":9,"extension":10,"preview":11,"thumb":12,"svgFrame":13,"seoMetadata":14,"parents":16,"keywords":15},"REVOLVING CREDIT AGREEMENT This Revolving Credit Agreement (the \"Agreement\") is made and effective this [DATE], BETWEEN: [LENDER NAME] (the \"Lender\"), an individual/entity organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its principal place of residence/business located at: [COMPLETE ADDRESS] AND: [BORROWER NAME] (the \"Borrower\"), an individual/entity organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its principal place of residence/business located at: [COMPLETE ADDRESS] WHEREAS, the Borrower has requested, and the Lender has agreed, to provide a revolving line of credit to the Borrower under the terms and conditions set forth in this Agreement; NOW, THEREFORE, in consideration of the mutual covenants and promises contained herein, the Parties hereto agree as follows: REVOLVING CREDIT FACILITY 1.1 Credit Limit: The Lender agrees to make loans to the Borrower from time to time up to an aggregate principal amount not to exceed [CREDIT LIMIT AMOUNT] (the \"Credit Limit\"), subject to the terms and conditions of this Agreement. 1.2 Advances: The Borrower may request advances under the revolving credit facility by providing written notice to the Lender specifying the amount of the requested advance. Each advance shall be in an amount of at least [MINIMUM ADVANCE AMOUNT]. 1.3 Repayment and Reborrowing: The Borrower may repay any amounts borrowed under this Agreement at any time, and amounts repaid may be reborrowed, subject to the Credit Limit and the terms of this Agreement. 1.4 Maturity Date: The revolving credit facility shall terminate on [MATURITY DATE], and all outstanding principal and accrued interest shall be due and payable on that date. INTEREST 2.1 Interest Rate: The outstanding principal amount of each advance shall bear interest at a rate of [INTEREST RATE]% per annum, calculated on the basis of a [360/365]-day year for the actual number of days elapsed. 2.2 Payment of Interest: Interest shall be payable [MONTHLY/QUARTERLY] in arrears on the [DAY] of each [MONTH/QUARTER], commencing on [FIRST PAYMENT DATE]. 2.3 Default Interest: If the Borrower fails to pay any amount due under this Agreement on the due date, the unpaid amount shall bear interest at the rate of [DEFAULT INTEREST RATE]% per annum from the due date until the date of payment. FEES 3.1 Commitment Fee: The Borrower shall pay the Lender a commitment fee equal to [COMMITMENT FEE PERCENTAGE]% of the Credit Limit, payable [ANNUALLY/QUARTERLY] in arrears on the [DAY] of [MONTH], commencing on [FIRST PAYMENT DATE]. 3.2 Unused Facility Fee: The Borrower shall pay the Lender an unused facility fee equal to [UNUSED FACILITY FEE PERCENTAGE]% per annum on the average daily unused portion of the Credit Limit, payable [MONTHLY/QUARTERLY] in arrears. PRECEDENT The obligation of the Lender to make any advance under this Agreement is subject to the following conditions precedent: 4.1 The Representations and Warranties: All representations and warranties of the Borrower contained in this Agreement shall be true and correct as of the date of the advance. 4.2 No Default: No event of default shall have occurred and be continuing under this Agreement or any other agreement between the Borrower and the Lender. 4.3 Required Documentation: The Lender shall have received all documentation and information reasonably requested by the Lender, including, but not limited to, evidence of the Borrower's authority to enter into this Agreement. REPRESENTATIONS AND WARRANTIES The Borrower represents and warrants to the Lender that: 5.1 Organization and Authority: The Borrower is duly organized, validly existing, and in good standing under the laws of the State/Province of [STATE/PROVINCE] and has the power and authority to enter into and perform its obligations under this Agreement. 5.2 Compliance with Laws: The Borrower is in compliance with all applicable federal, state, and local laws, regulations, and ordinances. 5",null,"Revolving Credit Agreement","5",513,"doc","https://templates.business-in-a-box.com/imgs/1000px/revolving-credit-agreement-D14051.png","https://templates.business-in-a-box.com/imgs/250px/14051.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#14051.xml",{"title":15,"description":6},"revolving credit agreement",[17,20],{"label":18,"url":19},"Legal Agreements","/templates/business-legal-agreements/",{"label":18,"url":19},"Revolving Credit Agreement Template","https://templates.business-in-a-box.com/imgs/400px/14051.png","https://templates.business-in-a-box.com/imgs/600px/14051.png",[25,17,20],{"label":26,"url":27},"Templates","/templates/",[29,30,33],{"label":26,"url":27},{"label":31,"url":32},"Finance & Accounting","/templates/finance-accounting/",{"label":34,"url":35},"Business Financing & Loans","/templates/business-financing-and-loans/",[37,41,45,49,52,56,60,64,68,72,76,81,85,102,119,134,148,163],{"label":38,"url":39,"thumb":40,"extension":10},"Line Of Credit Agreement","/template/line-of-credit-agreement-D14003","https://templates.business-in-a-box.com/imgs/250px/14003.png",{"label":42,"url":43,"thumb":44,"extension":10},"Credit Agreement","/template/credit-agreement-D416","https://templates.business-in-a-box.com/imgs/250px/416.png",{"label":46,"url":47,"thumb":48,"extension":10},"Credit Repair Agreement","/template/credit-repair-agreement-D13946","https://templates.business-in-a-box.com/imgs/250px/13946.png",{"label":38,"url":50,"thumb":51,"extension":10},"/template/line-of-credit-agreement-D13360","https://templates.business-in-a-box.com/imgs/250px/13360.png",{"label":53,"url":54,"thumb":55,"extension":10},"Credit Note","/template/credit-note-D13639","https://templates.business-in-a-box.com/imgs/250px/13639.png",{"label":57,"url":58,"thumb":59,"extension":10},"Credit Policy","/template/credit-policy-D12633","https://templates.business-in-a-box.com/imgs/250px/12633.png",{"label":61,"url":62,"thumb":63,"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":65,"url":66,"thumb":67,"extension":10},"Credit Memo","/template/credit-memo-D261","https://templates.business-in-a-box.com/imgs/250px/261.png",{"label":69,"url":70,"thumb":71,"extension":10},"Denial of Credit","/template/denial-of-credit-D264","https://templates.business-in-a-box.com/imgs/250px/264.png",{"label":73,"url":74,"thumb":75,"extension":10},"Restrictions on Credit","/template/restrictions-on-credit-D278","https://templates.business-in-a-box.com/imgs/250px/278.png",{"label":77,"url":78,"thumb":79,"extension":80},"Credit Memo - Excel","/template/credit-memo--excel-D260","https://templates.business-in-a-box.com/imgs/250px/260.png","xls",{"label":82,"url":83,"thumb":84,"extension":10},"Business Credit Application","/template/business-credit-application-D247","https://templates.business-in-a-box.com/imgs/250px/247.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":31,"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":105,"size":106,"extension":10,"preview":107,"thumb":108,"svgFrame":109,"seoMetadata":110,"parents":111,"keywords":117,"url":118},"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","3",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},[112,113,114],{"label":31,"url":96},{"label":98,"url":99},{"label":115,"url":116},"Promissory Notes","promisory-note","promissory note","/template/promissory-note-D434",{"description":120,"descriptionCustom":6,"label":121,"pages":122,"size":123,"extension":10,"preview":124,"thumb":125,"svgFrame":126,"seoMetadata":127,"parents":128,"keywords":132,"url":133},"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},[129,131],{"label":18,"url":130},"business-legal-agreements",{"label":18,"url":130},"security agreement","/template/security-agreement-D915",{"description":135,"descriptionCustom":6,"label":136,"pages":105,"size":9,"extension":10,"preview":137,"thumb":138,"svgFrame":139,"seoMetadata":140,"parents":142,"keywords":141,"url":147},"NON-DISCLOSURE AGREEMENT (NDA) This Non-Disclosure Agreement (the \"Agreement\") is made and effective [DATE], BETWEEN: [YOUR COMPANY NAME] (the \"Disclosing Party\"), a corporation organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [YOUR COMPLETE ADDRESS] AND: [RECEIVING PARTY NAME] (the \"Receiving Party\"), 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] WHEREAS, Receiving Party has been or will be engaged in the performance of work on [DESCRIBE]; and in connection therewith will be given access to certain confidential and proprietary information; and WHEREAS, Receiving Party and Disclosing Party wish to evidence by this Agreement the manner in which said confidential and proprietary material will be treated. NOW, THEREFORE, it is agreed as follows: NON-DISCLOSURE OF CONFIDENTIAL INFORMATION Both Parties understand and agree that each Party may have access to the confidential information of the other party. For the purposes of this Agreement, \"Confidential Information\" means proprietary and confidential information about the Disclosing Party's (or it's suppliers') business or activities. Such information includes all business, financial, technical, and other information marked or designated by such Party as \"confidential\" or \"proprietary.\" Confidential Information also includes information which, by the nature of the circumstances surrounding the disclosure, ought in good faith to be treated as confidential. For the purposes of this Agreement, Confidential Information does not include: Information that is currently in the public domain or that enters the public domain after the signing of this Agreement. Information a Party lawfully receives from a third Party without restriction on disclosure and without breach of a non-disclosure obligation. Information that the Receiving Party knew prior to receiving any Confidential Information from the Disclosing Party. Information that the Receiving Party independently develops without reliance on any Confidential Information from the Disclosing Party. Each Party agrees that it will not disclose to any third Party or use any Confidential Information disclosed to it by the other Party except when expressly permitted in writing by the other Party. Each Party also agrees that it will take all reasonable measures to maintain the confidentiality of all Confidential Information of the other Party in its possession or control. TERM The term of this Agreement is [number] of [years/months] from the date of execution by both Parties. TITLE The Receiving Party agrees that all Confidential Information furnished by the Disclosing Party shall remain the sole property of the Disclosing Party. DISCLAIMER","Non Disclosure Agreement Nda","https://templates.business-in-a-box.com/imgs/1000px/non-disclosure-agreement-nda-D12692.png","https://templates.business-in-a-box.com/imgs/250px/12692.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#12692.xml",{"title":141,"description":6},"non disclosure agreement nda",[143,144],{"label":18,"url":130},{"label":145,"url":146},"Confidentiality Agreements","confidentiality-agreement","/template/non-disclosure-agreement-nda-D12692",{"description":149,"descriptionCustom":6,"label":150,"pages":105,"size":151,"extension":10,"preview":152,"thumb":153,"svgFrame":154,"seoMetadata":155,"parents":156,"keywords":161,"url":162},"TERM SHEET Issue: [Venture Capital FIRM] (\"VC\") and/or any member of its corporate group (\"the VC Group\") will purchase up to [AMOUNT] Series A Convertible Preferred Stock (\"Series A\") newly issued by [YOUR COMPANY NAME] (the \"Company\") at a price per share of [PRICE] (the \"Purchase Price\"). In addition, other investors shall purchase at least [AMOUNT] but not more than [AMOUNT] of newly issued Series A at the Purchase Price. The shares of Series A will be convertible at any time at the option of the holder into common shares of the Company (\"Common Stock\") on a one-for-one basis, adjusted for future share splits. The Purchase Price equates to a pre-money valuation of [VALUATION]. The calculation is based on [NUMBER] fully diluted shares of Common Stock. If the number of shares issued, or stock awards/options authorized increases before the closing the price per share for Series A Convertible Preferred Stock shall be reduced so that the pre-money valuation is unchanged. The Series A Convertible Preferred Stock shall be referred to herein as the \"Preferred Stock.\" Dividend: The Preferred Stock is entitled to an annual [AMOUNT] per share dividend, payable when and if declared by the Board of Directors, but prior to any payment on Common Stock; dividends are not cumulative. Liquidation Preference: The Series A will have a liquidation preference so that proceeds on a merger, sale or liquidation (including non-cumulative dividends) will first be paid to the Series A and will include a [%] per annum compounding guaranteed return calculated on the total amount invested. Upon completion of an additional round of funding of at least [AMOUNT] the compounding guaranteed return feature will expire. The liquidation preference will cease to operate if the proceeds due to Series A, on a merger, sale or liquidation on an as-converted basis, exceed the proceeds that would be due under the liquidation preference. Use of Proceeds: The funds raised by Series A will be used principally for general working capital purposes. Voting Rights: The holders of the Series A shall have the right to vote with the Common Stock on an as-if-converted basis. Redemption: If not previously converted, the Series A is to be redeemed in three equal successive annual installments beginning [DATE]. Redemption will be at the purchase price plus a [%] per annum cumulative guaranteed return. Pre-emptive Rights: Holders of the Preferred Stock will be granted rights to participate in future equity financings of the Company based upon their pro-rata, as-if-converted, ownership of the Company. Automatic Conversion: The Preferred Stock shall be automatically converted into Common Stock at the then applicable conversion rate (1:1 assuming no share splits) in the event of an underwritten public offering of shares of the Company at a total offering of not less than [AMOUNT] and at a per share public offering price of not less than three times the Series A purchase price per share, adjusted for splits. Anti-Dilution: Series A shall have weighted average anti-dilution, based on a weighted average formula to be agreed, for all securities purchased as part of this transaction (excluding shares, options and warrants issued for management incentive and small issues for strategic purposes of under [NUMBER] shares). Management Options: Simultaneously with this transaction, one million new shares shall expand the Company's management incentive stock option pool - bringing the total number of shares issued and stock incentives (awards and options) authorized to [NUMBER OF SHARES]. Rights of First Offer; Tag-Along: The Company and the Investors will have a right of first refusal with respect to any employee's shares proposed to be resold. Alternatively, the Investors will have the right to participate in the sale of any such shares to a third party (co-sale rights), which rights will terminate upon a public offering. Information Rights: Monthly actual vs. plan and prior year. Annual budget [NUMBER] days before beginning of fiscal year","Term Sheet",42,"https://templates.business-in-a-box.com/imgs/1000px/term-sheet-D473.png","https://templates.business-in-a-box.com/imgs/250px/473.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#473.xml",{"title":6,"description":6},[157,158],{"label":31,"url":96},{"label":159,"url":160},"Raising Capital","raising-capital","term sheet","/template/term-sheet-D473",{"description":164,"descriptionCustom":6,"label":165,"pages":166,"size":9,"extension":10,"preview":167,"thumb":168,"svgFrame":169,"seoMetadata":170,"parents":172,"keywords":176,"url":177},"[DATE] [CONTACT NAME] [ADDRESS] [ADDRESS 2] [CITY, STATE/PROVINCE] [ZIP/POSTAL CODE] SUBJECT: DEFAULT ON PROMISSORY NOTE Dear [CONTACT NAME], Reference is made to the promissory note dated [DATE], in the original amount of [AMOUNT]. You have defaulted under said note in that the installment due on [DATE], in the amount of [AMOUNT] has not been paid. Accordingly, demand is hereby made upon you for full payment of the entire balance on said note in the amount of [AMOUNT], including accrued interest to date. In the event the entire balance is not paid within the next [NUMBER] days, I shall refer this matter to an attorney resulting in additional costs of collection. Sincerely, [YOUR NAME] [YOUR TITLE] [YOUR PHONE NUMBER] [YOUREMAIL@YOURCOMPANY.COM] [IF SENT BY EMAIL YOU MAY INCLUDE THIS NOTICE] This email is intended only for the person to whom it is addressed and/or otherwise authorized personnel","Letter of Default on Promissory Note","1","https://templates.business-in-a-box.com/imgs/1000px/letter-of-default-on-promissory-note-D431.png","https://templates.business-in-a-box.com/imgs/250px/431.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#431.xml",{"title":171,"description":6},"letter of default on promissory note",[173,174,175],{"label":31,"url":96},{"label":98,"url":99},{"label":115,"url":116},"letter default promissory note","/template/letter-of-default-on-promissory-note-D431",false,{"seo":180,"reviewer":191,"quick_facts":195,"at_a_glance":198,"personas":202,"variants":227,"glossary":253,"clauses":290,"how_to_fill":341,"common_mistakes":382,"faqs":407,"industries":435,"comparisons":460,"diy_vs_lawyer":473,"jurisdictions":486,"related_template_ids_curated":507,"schema":517,"classification":518},{"meta_title":181,"meta_description":182,"primary_keyword":183,"secondary_keywords":184},"Revolving Credit Agreement Template (Free Word)","Free revolving credit agreement template for businesses. Covers credit limits, drawdown mechanics, interest, repayment, covenants, and default. Free Word and PDF download.","revolving credit agreement template",[15,185,186,187,188,189,190],"revolving line of credit agreement template","revolving credit facility template","business credit agreement template","revolving loan agreement template","revolving credit agreement word","revolving credit facility agreement free",{"name":192,"credential":193,"reviewed_date":194},"Bruno Goulet","CEO, Business in a Box","2026-05-02",{"difficulty":196,"legal_review_recommended":197,"signature_required":197},"advanced",true,{"what_it_is":199,"when_you_need_it":200,"whats_inside":201},"A Revolving Credit Agreement is a legally binding contract between a lender and a borrower that establishes a renewable credit facility up to a defined maximum — the borrower draws funds as needed, repays them, and draws again within the credit limit and term. This free Word download gives you a structured, attorney-reviewed starting point you can edit online and export as PDF for execution between business parties.\n","Use it when a lender — a bank, private creditor, or affiliated entity — and a business borrower agree to an ongoing, flexible financing arrangement rather than a single fixed-amount loan. It is typically executed at the outset of the credit relationship before any funds are drawn.\n","Credit limit and availability, drawdown request procedure, interest rate and calculation method, repayment and revolving mechanics, fees, financial and operational covenants, events of default, lender remedies, security and collateral references, and governing law.\n",[203,207,211,215,219,223],{"title":204,"use_case":205,"icon_asset_id":206},"CFOs and finance directors","Establishing a working-capital facility to manage seasonal cash-flow gaps","persona-cfo",{"title":208,"use_case":209,"icon_asset_id":210},"Small business owners","Securing a flexible credit line from a bank or private lender for ongoing operations","persona-small-business-owner",{"title":212,"use_case":213,"icon_asset_id":214},"Commercial lenders and credit officers","Documenting a revolving facility extended to a corporate borrower","persona-lender",{"title":216,"use_case":217,"icon_asset_id":218},"Startup founders","Arranging a revolving line with an investor or family office prior to institutional financing","persona-startup-founder",{"title":220,"use_case":221,"icon_asset_id":222},"Private equity and portfolio company operators","Formalizing an intercompany revolving facility between a parent and subsidiary","persona-private-equity",{"title":224,"use_case":225,"icon_asset_id":226},"In-house legal and corporate counsel","Standardizing revolving credit documentation across multiple borrower entities","persona-corporate-counsel",[228,231,234,238,242,245,249],{"situation":229,"recommended_template":87,"slug":230},"One-time fixed loan rather than a reusable credit line","loan-agreement-D417",{"situation":232,"recommended_template":104,"slug":233},"Short-term bridge financing with a single repayment date","promissory-note-D434",{"situation":235,"recommended_template":236,"slug":237},"Intercompany loan from parent entity to subsidiary","Intercompany Loan Agreement","inter-company-services-agreement-D886",{"situation":239,"recommended_template":240,"slug":241},"Line of credit secured by accounts receivable or inventory","Asset-Based Lending Agreement","asset-purchase-agreement-D928",{"situation":243,"recommended_template":244,"slug":230},"Personal loan or consumer line of credit","Personal Loan Agreement",{"situation":246,"recommended_template":247,"slug":248},"Credit extended to a buyer as part of a commercial sale","Credit Agreement (Trade Credit)","credit-note-D13639",{"situation":250,"recommended_template":251,"slug":252},"Syndicated facility with multiple lenders sharing the commitment","Syndicated Credit Facility Agreement","facility-agreement-D13269",[254,257,260,263,266,269,272,275,278,281,284,287],{"term":255,"definition":256},"Credit Limit (Commitment Amount)","The maximum outstanding principal balance the lender agrees to make available to the borrower at any one time under the revolving facility.",{"term":258,"definition":259},"Drawdown (Advance)","A formal request by the borrower to access funds under the credit facility, subject to conditions precedent and availability.",{"term":261,"definition":262},"Availability","The amount the borrower can draw at any given time, calculated as the credit limit minus the outstanding principal balance.",{"term":264,"definition":265},"Revolving Period","The defined term during which the borrower may draw, repay, and redraw funds; the facility converts to a term loan or terminates at the end of this period.",{"term":267,"definition":268},"Interest Rate (Applicable Rate)","The per-annum rate charged on outstanding drawn balances, which may be fixed, variable (e.g., prime + spread), or based on a reference rate such as SOFR.",{"term":270,"definition":271},"Commitment Fee","A fee charged on the undrawn portion of the credit facility, compensating the lender for keeping capital available even when not drawn.",{"term":273,"definition":274},"Financial Covenant","A contractual obligation requiring the borrower to maintain specified financial ratios — such as debt-to-EBITDA or minimum liquidity — measured at regular intervals.",{"term":276,"definition":277},"Event of Default","A defined trigger — such as missed payment, covenant breach, or insolvency — that entitles the lender to accelerate the outstanding balance and exercise remedies.",{"term":279,"definition":280},"Acceleration","The lender's right, upon an event of default, to declare the entire outstanding balance immediately due and payable rather than on the scheduled repayment dates.",{"term":282,"definition":283},"SOFR (Secured Overnight Financing Rate)","The benchmark interest rate that replaced USD LIBOR as the standard reference rate for US dollar-denominated floating-rate credit facilities.",{"term":285,"definition":286},"Conditions Precedent","Requirements the borrower must satisfy before the lender is obligated to fund an advance — such as providing updated financials or certifying no existing default.",{"term":288,"definition":289},"Security Interest","A lender's legal claim over specified collateral — accounts receivable, inventory, equipment, or a general business charge — that secures the borrower's obligations under the facility.",[291,296,301,306,311,316,321,326,331,336],{"name":292,"plain_english":293,"sample_language":294,"common_mistake":295},"Parties, Recitals, and Definitions","Identifies the lender and borrower as legal entities, states the purpose of the facility, and defines every capitalized term used throughout the agreement.","This Revolving Credit Agreement ('Agreement') is entered into as of [DATE] between [LENDER LEGAL NAME] ('Lender') and [BORROWER LEGAL NAME], a [STATE/PROVINCE] [ENTITY TYPE] ('Borrower'). Capitalized terms not otherwise defined herein have the meanings set forth in Schedule A.","Using informal trade names instead of registered legal entity names — the agreement may be unenforceable against the intended party if the entity name does not match public records.",{"name":297,"plain_english":298,"sample_language":299,"common_mistake":300},"Credit Facility and Commitment","States the maximum credit limit, confirms the revolving nature of the facility, and sets the revolving period during which draws and repayments may occur.","Subject to the terms hereof, Lender agrees to make revolving advances to Borrower from time to time during the Revolving Period in an aggregate principal amount not to exceed [CREDIT LIMIT] (the 'Commitment'). Borrower may borrow, repay, and reborrow amounts under the Commitment.","Failing to define the revolving period end date. Without a termination date, the lender's commitment is indefinite, creating an open-ended contingent liability on the lender's balance sheet.",{"name":302,"plain_english":303,"sample_language":304,"common_mistake":305},"Drawdown Procedure","Specifies how the borrower requests an advance — notice period, minimum advance amount, required certifications, and the lender's funding obligations upon a valid request.","Borrower shall deliver a Drawdown Notice to Lender no later than [X] business days prior to the proposed Advance Date, in the form attached as Exhibit [X], specifying the amount requested (minimum $[AMOUNT]) and confirming that no Default exists.","Omitting a minimum notice period for drawdown requests. Without one, the lender cannot operationally plan funding, leading to disputes about whether a draw was timely honored.",{"name":307,"plain_english":308,"sample_language":309,"common_mistake":310},"Interest Rate, Calculation, and Payment","Defines the applicable interest rate, how interest accrues on outstanding drawn balances, the calculation method (actual/360 or actual/365), and when interest payments are due.","Outstanding advances shall bear interest at a per-annum rate equal to [REFERENCE RATE] plus [X]% (the 'Applicable Rate'), calculated on the basis of a [360/365]-day year on actual days elapsed. Interest is payable monthly on the [DATE] of each calendar month.","Leaving the reference rate as 'LIBOR' in a template drafted after 2023. LIBOR is retired for most currencies — use SOFR (USD), SONIA (GBP), or EURIBOR (EUR) as appropriate.",{"name":312,"plain_english":313,"sample_language":314,"common_mistake":315},"Repayment and Revolving Mechanics","States when principal repayments are due, confirms that repaid amounts become available to reborrow (subject to the credit limit), and sets the final maturity date for full repayment.","Principal amounts repaid by Borrower shall be available for re-advance during the Revolving Period, subject to the Commitment. All outstanding principal and accrued interest shall be repaid in full on the Maturity Date of [DATE].","Not specifying whether partial repayments are immediately available to redraw or subject to a re-advance notice period — ambiguity here causes operational disputes between treasury and credit teams.",{"name":317,"plain_english":318,"sample_language":319,"common_mistake":320},"Fees","Lists all fees payable under the facility — commitment fee on undrawn amounts, arrangement fee, utilization fee if applicable, and any prepayment penalty.","Borrower shall pay Lender (a) a Commitment Fee of [X]% per annum on the daily average undrawn Commitment, payable quarterly in arrears; and (b) an Arrangement Fee of $[AMOUNT], payable on the Closing Date.","Omitting the commitment fee entirely in a template to keep it 'simple.' Lenders rely on this fee as compensation for maintaining availability — its absence makes the facility economically unviable for many lenders.",{"name":322,"plain_english":323,"sample_language":324,"common_mistake":325},"Representations, Warranties, and Covenants","The borrower confirms key facts (solvency, no pending litigation, accurate financials) at signing and on each draw date, and commits to ongoing financial and operational obligations throughout the term.","Borrower represents and warrants that: (a) it is duly organized and in good standing; (b) the execution of this Agreement does not violate any existing obligation; (c) Borrower's most recent financial statements are true and accurate. Borrower covenants to maintain a minimum [RATIO] of [X]:1 measured [QUARTERLY/ANNUALLY].","Using financial covenants from a generic template without calibrating them to the borrower's actual balance sheet. A debt-service coverage ratio set at 1.25x may be immediately breached by a borrower whose current ratio is 1.15x.",{"name":327,"plain_english":328,"sample_language":329,"common_mistake":330},"Events of Default and Remedies","Lists specific triggers — payment failure, covenant breach, insolvency, change of control — that entitle the lender to suspend draws, accelerate the balance, and enforce security.","Each of the following constitutes an Event of Default: (a) failure to pay principal or interest within [X] days of the due date; (b) breach of any financial covenant not cured within [X] days of written notice; (c) commencement of insolvency or bankruptcy proceedings. Upon an Event of Default, Lender may declare all Obligations immediately due and payable.","No cure period for technical or financial covenant defaults. A single missed ratio with no opportunity to remedy can trigger acceleration unnecessarily, destroying an otherwise healthy lending relationship.",{"name":332,"plain_english":333,"sample_language":334,"common_mistake":335},"Security and Collateral","Specifies what assets secure the facility — a general security agreement, pledge of receivables, or specific collateral — and references any separate security documents executed alongside the agreement.","As security for all Obligations, Borrower grants Lender a first-priority security interest in the Collateral described in the General Security Agreement dated [DATE] and executed concurrently herewith.","Describing collateral in the credit agreement without executing and registering a separate security agreement. The reference alone does not perfect the security interest — registration under the UCC, PPSA, or equivalent statute is required.",{"name":337,"plain_english":338,"sample_language":339,"common_mistake":340},"Governing Law, Jurisdiction, and Notices","Specifies the jurisdiction whose laws govern the agreement, the courts with exclusive or non-exclusive jurisdiction, and how formal notices between parties must be delivered.","This Agreement shall be governed by and construed in accordance with the laws of [STATE/PROVINCE/COUNTRY]. Any dispute shall be subject to the exclusive jurisdiction of the courts of [CITY/JURISDICTION]. Notices shall be in writing and delivered to the addresses set forth in Schedule B.","Choosing a governing law with no meaningful connection to where the borrower operates or holds assets. In an enforcement scenario, a foreign-law judgment may be difficult and expensive to execute against domestic assets.",[342,347,352,357,362,367,372,377],{"step":343,"title":344,"description":345,"tip":346},1,"Insert the parties' full legal names and contact details","Enter both the lender's and borrower's registered legal entity names, entity types, jurisdiction of formation, and principal business addresses. Cross-reference corporate registry records before signing.","For corporate borrowers, confirm the exact entity name matches the signing authority's certificate of incumbency — mismatches can void enforcement.",{"step":348,"title":349,"description":350,"tip":351},2,"Define the credit limit and revolving period","Set the maximum commitment amount in figures and words, and specify the start and end dates of the revolving period — the window during which draws and repayments can occur.","Choose a revolving period aligned with the borrower's business cycle; a 12-month auto-renewable term is standard for working-capital facilities.",{"step":353,"title":354,"description":355,"tip":356},3,"Set the interest rate and reference rate","Choose a fixed or floating rate. For floating, select the current benchmark — SOFR for USD, SONIA for GBP, EURIBOR for EUR — and specify the spread in basis points. Define the interest calculation basis (actual/360 or actual/365).","Include a fallback rate provision in case the chosen reference rate is discontinued — regulators require this for new floating-rate instruments.",{"step":358,"title":359,"description":360,"tip":361},4,"Draft the drawdown procedure and minimum advance amount","Specify the number of business days' advance notice required for each draw, the minimum draw amount, and the form of the drawdown certificate the borrower must deliver.","A minimum advance of 5–10% of the credit limit prevents excessive administrative burden from small, frequent draws.",{"step":363,"title":364,"description":365,"tip":366},5,"Calibrate financial covenants to the borrower's actual financials","Review the borrower's most recent audited statements. Set ratios — debt-to-EBITDA, current ratio, minimum tangible net worth — with headroom of at least 15–20% above the current level to avoid immediate technical default.","Include a cure period of 30–45 days for financial covenant breaches triggered by temporary fluctuations before acceleration is permitted.",{"step":368,"title":369,"description":370,"tip":371},6,"List events of default and include cure periods","Enumerate payment default (typically 3–5 business days), financial covenant breach (30–45 days), representations breach, insolvency events, and material adverse change. Confirm which defaults are subject to cure.","Distinguish between 'hard' defaults (insolvency, fraud) with no cure period and 'soft' defaults (ratio breach, late filing) with a defined cure window.",{"step":373,"title":374,"description":375,"tip":376},7,"Reference and execute supporting security documents","If the facility is secured, prepare a separate general security agreement, pledge, or debenture concurrently with the credit agreement. Reference each security document by name and date in the collateral clause.","Register the security interest under the applicable statute — UCC Article 9 in the US, PPSA in Canada — within the required timeframe to perfect priority.",{"step":378,"title":379,"description":380,"tip":381},8,"Execute and date the agreement before any funds are drawn","Both authorized signatories must sign before the first advance is made. Attach board or director resolutions authorizing execution. Confirm that any conditions precedent listed in the agreement are satisfied at closing.","Collect a certificate of incumbency confirming the signing officer's authority — a lender who funds without this has limited recourse if the borrower disputes authorization.",[383,387,391,395,399,403],{"mistake":384,"why_it_matters":385,"fix":386},"No defined maturity date or revolving period end","An open-ended commitment creates an indefinite contingent liability for the lender and removes the borrower's incentive to refinance or repay. Auditors may also require unfavorable balance-sheet treatment.","Set a specific maturity date — typically 12, 24, or 36 months from closing — with optional renewal mechanics requiring affirmative lender consent.",{"mistake":388,"why_it_matters":389,"fix":390},"Using retired LIBOR as the reference rate","LIBOR was formally discontinued for USD, GBP, EUR, JPY, and CHF by mid-2023. A credit agreement referencing LIBOR has no operative rate mechanism and will fail to accrue interest correctly.","Replace LIBOR with the applicable successor rate — SOFR for USD, SONIA for GBP, EURIBOR for EUR — and include a regulatory-compliant fallback rate provision.",{"mistake":392,"why_it_matters":393,"fix":394},"Failing to perfect the security interest after execution","Signing a security agreement does not create priority over other creditors. Without UCC or PPSA registration, the lender is unsecured in a bankruptcy and ranks behind perfected secured creditors.","File a UCC-1 financing statement (US) or PPSA financing statement (Canada) within the prescribed period after execution to perfect and publicize the security interest.",{"mistake":396,"why_it_matters":397,"fix":398},"Setting financial covenants without headroom","A covenant set exactly at the borrower's current ratio level triggers a technical default the moment performance dips slightly, forcing expensive waiver negotiations and straining the lending relationship.","Set covenant thresholds at 15–20% below the borrower's current baseline after reviewing the most recent two years of audited financials, and include a 30-day cure period before acceleration.",{"mistake":400,"why_it_matters":401,"fix":402},"No minimum drawdown notice period","Without a required advance notice for draws, lenders face same-day funding demands they cannot operationally accommodate, leading to disputes about whether a draw request was honored in breach.","Specify a minimum of 2–3 business days' prior written notice for each draw, and require a completed drawdown certificate confirming no existing default.",{"mistake":404,"why_it_matters":405,"fix":406},"Omitting a material adverse change definition","An undefined MAC clause is either too broad to enforce or too narrow to capture genuine deterioration — courts have invalidated vague MAC provisions as subjective and unenforceable.","Define Material Adverse Change with specificity: reference thresholds such as a decline exceeding [X]% in revenue, net assets below $[X], or loss of a key license, rather than relying on general language.",[408,411,414,417,420,423,426,429,432],{"question":409,"answer":410},"What is a revolving credit agreement?","A revolving credit agreement is a legally binding contract between a lender and a borrower establishing a flexible credit facility up to a defined maximum. The borrower draws funds as needed, repays them, and draws again within the credit limit and revolving period — unlike a term loan, which disburses a fixed amount once. It functions similarly to a corporate credit card but is governed by a formal legal agreement with covenants, interest mechanics, and defined default triggers.\n",{"question":412,"answer":413},"What is the difference between a revolving credit agreement and a term loan agreement?","A term loan disburses a fixed amount on a single date and is repaid on a set schedule — repaid principal cannot be redrawn. A revolving credit facility allows the borrower to draw, repay, and redraw repeatedly up to the credit limit throughout the revolving period. Revolving facilities are used for working capital and liquidity management; term loans are used for specific capital investments or acquisitions.\n",{"question":415,"answer":416},"What should a revolving credit agreement include?","At minimum: parties and definitions, the credit limit and commitment, the revolving period and maturity date, drawdown procedure and minimum advance amount, interest rate and calculation method, repayment mechanics, fees (commitment fee, arrangement fee), financial and operational covenants, events of default with cure periods, security and collateral references, and governing law. Missing any of these creates gaps that favor the better-resourced party in a dispute.\n",{"question":418,"answer":419},"Is a revolving credit agreement legally enforceable?","A revolving credit agreement is generally enforceable when properly executed by authorized signatories, supported by valid consideration, and compliant with applicable lending and usury laws in the governing jurisdiction. Consumer credit facilities are subject to additional regulatory requirements — Truth in Lending Act (US), Consumer Credit Act (UK) — that do not apply to commercial agreements between businesses. Consider consulting a lawyer before execution.\n",{"question":421,"answer":422},"Do I need a lawyer to draft a revolving credit agreement?","For straightforward bilateral facilities between two businesses with familiar terms, a high-quality template reviewed by counsel is often sufficient. Engage a lawyer when the facility exceeds $500,000, involves cross-border parties, requires complex security over regulated assets, or is part of a broader acquisition or restructuring. A 2–4 hour attorney review typically costs $600–$1,500 and is advisable for any facility where default would have material financial consequences.\n",{"question":424,"answer":425},"What is a commitment fee and is it required?","A commitment fee is charged on the undrawn portion of the credit limit — typically 0.25–1.00% per annum — compensating the lender for maintaining capital availability even when the borrower is not drawing. It is not legally required but is standard market practice for commercial revolving facilities. Omitting it makes the facility less economically attractive for lenders and may signal an uncommitted or informal arrangement.\n",{"question":427,"answer":428},"What events typically trigger a default under a revolving credit agreement?","Common events of default include failure to pay principal or interest within the grace period (typically 3–5 business days), breach of a financial covenant not cured within 30–45 days, a material misrepresentation in borrower certifications, commencement of insolvency proceedings, a change of control without lender consent, and the occurrence of a material adverse change as defined in the agreement. Hard defaults such as insolvency typically carry no cure period and permit immediate acceleration.\n",{"question":430,"answer":431},"How is interest calculated on a revolving credit facility?","Interest accrues only on the outstanding drawn balance — not on the full commitment amount. The rate may be fixed or floating; floating rates reference a benchmark such as SOFR (USD) plus a negotiated spread in basis points. Interest is calculated on an actual/360 or actual/365 basis depending on market convention and currency, and is typically payable monthly or quarterly in arrears.\n",{"question":433,"answer":434},"What is the difference between a revolving credit agreement and a line of credit?","The terms are often used interchangeably in practice. A line of credit is the broader commercial concept — a pre-approved borrowing limit. A revolving credit agreement is the formal legal document that governs a line of credit, specifying all terms, covenants, and remedies. All revolving credit agreements establish a line of credit, but not every informal line of credit is documented with a revolving credit agreement of this scope.\n",[436,440,444,448,452,456],{"industry":437,"icon_asset_id":438,"specifics":439},"Retail and E-commerce","industry-retail","Seasonal inventory financing draws peak before Q4, repaid after holiday sales; availability tied to borrowing-base certificates against eligible inventory.",{"industry":441,"icon_asset_id":442,"specifics":443},"Manufacturing","industry-manufacturing","Working-capital draws fund raw material purchases; availability formulas often reference accounts receivable and inventory as collateral base.",{"industry":445,"icon_asset_id":446,"specifics":447},"Professional Services","industry-professional-services","Receivables-backed revolving lines bridge the gap between invoice issuance and client payment under Net 30–60 terms.",{"industry":449,"icon_asset_id":450,"specifics":451},"Real Estate and Construction","industry-real-estate","Construction revolvers fund draw requests tied to project completion milestones; collateral is typically a first mortgage over the project property.",{"industry":453,"icon_asset_id":454,"specifics":455},"Technology / SaaS","industry-saas","Venture debt revolvers provide liquidity between equity rounds; covenants reference ARR growth, churn thresholds, and minimum cash runway.",{"industry":457,"icon_asset_id":458,"specifics":459},"Healthcare","industry-healthtech","Revenue-cycle financing draws against outstanding insurance receivables; eligibility criteria exclude government payer receivables beyond defined aging thresholds.",[461,464,467,470],{"vs":87,"vs_template_id":462,"summary":463},"loan-agreement-D161","A standard loan agreement disburses a fixed principal amount once; the borrower repays on a set schedule and cannot redraw repaid amounts. A revolving credit agreement allows repeated draws and repayments within the credit limit throughout the revolving period. Use a term loan for a defined capital investment; use a revolving facility for ongoing liquidity management.",{"vs":104,"vs_template_id":465,"summary":466},"promissory-note-D162","A promissory note is a simple, one-page unconditional promise to repay a fixed amount — typically with minimal conditions, no covenants, and no drawdown mechanics. A revolving credit agreement is a comprehensive multi-page contract covering availability, covenants, default, and security. Use a promissory note for straightforward informal loans; use a revolving credit agreement when the facility involves ongoing availability and lender protections.",{"vs":244,"vs_template_id":468,"summary":469},"personal-loan-agreement-D13628","A personal loan agreement governs a fixed-amount loan between individuals or between an individual and a lender, typically without financial covenants or revolving mechanics. A revolving credit agreement is a commercial instrument for business borrowers with structured availability, fees, and covenants. Consumer credit facilities are also subject to additional regulatory disclosure requirements that do not apply to commercial agreements.",{"vs":121,"vs_template_id":471,"summary":472},"security-agreement-D13629","A security agreement is a standalone document granting the lender a security interest over specified collateral — it governs the collateral relationship only. A revolving credit agreement governs the entire lending relationship: availability, interest, repayment, covenants, and default. The two documents are typically executed together; the credit agreement references the security agreement for collateral terms.",{"use_template":474,"template_plus_review":478,"custom_drafted":482},{"best_for":475,"cost":476,"time":477},"Straightforward bilateral revolving facilities up to $250,000 between two domestic business entities with familiar terms","Free","1–2 hours to complete",{"best_for":479,"cost":480,"time":481},"Facilities between $250,000 and $1,000,000, cross-province arrangements, or deals requiring collateral registration","$600–$1,500 for attorney review","2–5 business days",{"best_for":483,"cost":484,"time":485},"Facilities above $1,000,000, syndicated arrangements, cross-border lending, regulated collateral, or facilities tied to an acquisition or restructuring","$3,000–$15,000+","2–6 weeks",[487,492,497,502],{"code":488,"name":489,"flag_asset_id":490,"note":491},"us","United States","flag-us","Commercial revolving facilities are primarily governed by state contract law and UCC Article 9 for security interests. Usury laws vary by state — several states cap interest rates on commercial loans, though many commercial agreements use choice-of-law clauses to select favorable states such as New York or Delaware. Security interests must be perfected by filing a UCC-1 financing statement with the Secretary of State. Since mid-2023, USD floating-rate facilities must reference SOFR rather than USD LIBOR.",{"code":493,"name":494,"flag_asset_id":495,"note":496},"ca","Canada","flag-ca","Commercial credit agreements are governed by provincial contract and personal property security law. Security interests are registered under each province's PPSA (Personal Property Security Act) — a separate registration is required in each province where the borrower holds assets. Quebec is governed by the Civil Code rather than common law, requiring a hypothec rather than a UCC-style security interest. Interest rate disclosure requirements under the Interest Act apply to written agreements.",{"code":498,"name":499,"flag_asset_id":500,"note":501},"uk","United Kingdom","flag-uk","Commercial revolving facilities between businesses are governed by contract law and the Financial Services and Markets Act 2000 where the lender is regulated. Security over company assets is typically taken via a fixed and floating charge registered at Companies House within 21 days of creation. GBP floating-rate facilities should reference SONIA rather than the discontinued GBP LIBOR. Post-Brexit, EU regulatory requirements no longer apply to UK-only facilities, but cross-border EU-UK arrangements may require dual compliance.",{"code":503,"name":504,"flag_asset_id":505,"note":506},"eu","European Union","flag-eu","Commercial credit agreements between EU businesses are governed by the law of the member state specified in the governing-law clause, subject to Rome I Regulation on the law applicable to contractual obligations. EUR floating-rate facilities reference EURIBOR or €STR as the benchmark rate. Security perfection requirements vary significantly by member state — France, Germany, and the Netherlands each have distinct registration and formality requirements. Cross-border facilities may trigger regulatory oversight under the EU Capital Requirements Regulation if extended by a regulated credit institution.",[230,233,230,508,509,510,511,512,513,514,515,516],"security-agreement-D915","non-disclosure-agreement-nda-D12692","term-sheet-D473","letter-of-default-on-promissory-note-D431","guarantee-of-account-D400","board-resolution-D78","service-agreement-D12711","purchase-order-D1411","sales-invoice-D383",{"emit_how_to":197,"emit_defined_term":197},{"primary_folder":96,"secondary_folder":519,"document_type":520,"industry":521,"business_stage":522,"tags":523,"confidence":528},"business-financing-and-loans","agreement","general","all-stages",[524,520,525,526,527],"loan","revolving-credit","financing","borrowing",0.95,"\u003Ch2>What is a Revolving Credit Agreement?\u003C/h2>\n\u003Cp>A \u003Cstrong>Revolving Credit Agreement\u003C/strong> is a legally binding contract between a lender and a business borrower that establishes a renewable credit facility up to a defined maximum commitment amount. Unlike a term loan — which disburses a fixed sum once and amortizes on a set schedule — a revolving facility allows the borrower to draw funds as needed, repay them, and draw again within the credit limit throughout the revolving period. The outstanding balance fluctuates with the borrower's cash needs, and interest accrues only on the drawn amount at any given time. This structure makes revolving credit agreements the standard instrument for working-capital financing, seasonal inventory purchases, and liquidity management across industries from retail to manufacturing to professional services.\u003C/p>\n\u003Ch2>Why You Need This Document\u003C/h2>\n\u003Cp>Operating a revolving credit facility without a formal written agreement exposes both the lender and borrower to significant risk. Without defined covenants, the lender has no early-warning mechanism before a borrower's financial position deteriorates to the point of non-payment. Without a clear events-of-default and acceleration clause, collecting an overdue balance requires lengthy litigation rather than a contractual remedy. For the borrower, an undocumented facility can be recalled without notice, leaving a working-capital gap at the worst possible time. A properly drafted revolving credit agreement locks in the credit limit, interest rate, repayment mechanics, and cure periods — giving both parties a predictable framework and a roadmap for resolving problems before they escalate. This template provides the structure a commercial lender or business borrower needs to document the facility correctly, protect security interests, and comply with applicable law from day one.\u003C/p>\n",1781186001530]