Facility Agreement Templates: Control the Lending and Borrowing Money Process
Do you run a business institution of lending money? If so, there will come some businessmen to you to get the services. To lend money will certainly help the people who borrow it concerning funds for the latter’s business operation. So, facility agreement templates will help you to arrange and legalize the obligations and rights for the contracting parties. Also, the printable facility agreement templates can be contract agreements that happen to you as the lender and the borrower. Just get some samples here to help you provide this kind of agreement legally and acceptably.
3 Types of Facility Agreement Templates
This kind of agreement template has 3 types to know. What are they? Let’s find out the answer by following the explanation below.
- Overdraft
This type shows the process in which the borrowers are permitted to borrow money. They can do it although the balance of their account seems to be zero. This condition means they can still withdraw money that is supposed as a credit for an extension.
- Term of loan
What do you think about this type? Well, it is the condition where the lender makes a schedule for the debt repayment to the borrower. This type of facility agreement templates printable should be done with an agreeing fixed interest.
- Revolving facility
The last type to know when you want to use this agreement template is a revolving facility. Yes, this type is a condition where to borrow money is needed with a commitment fee. As a result, you can use the fee whenever you need it.
Significant Purposes of Facility Agreement for a Lender
Most people do not know the purposes of this agreement in the business. If you are one of them who does not know anything about them, you are so lucky since you can understand them now. Here we go.
- Control the borrower faculty
The first purpose of the sample facility agreement templates is to control the faculty drawing down got by the borrower. So, if you are the lender, this first purpose will be helpful for you.
- Monitor the borrower’s activities and financial status
You, as the lender, can do this second purpose through undertakings. This way can make sure that your borrower is well-monitored.
- Give a lender authority to demand repayment to the borrower
With this template, you can demand repayment to the borrower when defaults arise during the process of borrowing.
Borrower Aims of this Agreement
Besides for a lender, this agreement also has a few aims for a borrower. Here they are.
- Lessen expenses and fees
To have fees reduction is a matter that a borrower hopes during the process of borrowing. So, this agreement will help them to make it happen.
- Assure that there is compliance the borrower gets with the terms and condition
- Ensure remedies
This third purpose is important to get when the accelerations are triggered.
- Lessen administrative tasks
This agreement is set to be simple to use. Thus, it can lessen the administrative tasks that the borrower gets.
- Maximize time for making reports
When there are only little administrative tasks the borrower gets, this condition will certainly maximize the time for making reports.
Well, that is all about the facility agreement templates sample you need to know before using. After understanding it, you can find some agreement samples here and download them freely.
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