Financial
Line of Credit Agreement
Revolving credit facility allowing borrower to access funds up to predetermined limit, with flexible draw and repayment terms, typically secured by business assets or personal guarantees.
Key Clauses
1
Credit Limit
Establishes the maximum borrowing amount available under the revolving facility.
2
Interest and Fees
Specifies interest rate calculation, unused line fees, and annual charges.
3
Draw and Repayment
Details how funds are drawn, minimum payments, and repayment procedures.
4
Collateral
Identifies assets pledged as security for the credit line, if applicable.
5
Financial Covenants
Sets financial ratios or conditions the borrower must maintain.
Use This Template
When You Need This
- A business establishing a revolving credit facility with a lender
- Documenting terms for a personal or business line of credit
- Securing working capital access with flexible draw-down capabilities
- Formalizing collateral and financial covenant requirements for credit access