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Pre Financing Agreement for the United Kingdom

Pre Financing Agreement Template for England and Wales

A Pre Financing Agreement under English and Welsh law is a legally binding document that establishes the framework and conditions for a future financing arrangement. It outlines the terms, conditions, and requirements that must be met before the main financing is provided, including due diligence requirements, conditions precedent, and key commercial terms. The agreement provides security and clarity for both the financier and the borrower while maintaining compliance with UK financial regulations and FCA requirements.

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Pre Financing Agreement

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What is a Pre Financing Agreement?

The Pre Financing Agreement serves as a crucial preliminary document in financing transactions under English and Welsh law. It is typically used when parties have agreed in principle to a financing arrangement but need to establish formal terms and conditions before the main facility is made available. The agreement includes key commercial terms, conditions precedent, representations and warranties, and other essential provisions that govern the pre-financing phase. It provides a legally binding framework while allowing for necessary due diligence and documentation to be completed before the main financing is provided.

What sections should be included in a Pre Financing Agreement?

1. Parties: Identification and details of all parties to the agreement

2. Background: Context and purpose of the pre-financing arrangement

3. Definitions: Key terms used throughout the agreement

4. Financing Terms: Core financial terms including amount, interest, and repayment structure

5. Conditions Precedent: Conditions that must be satisfied before financing becomes available

6. Representations and Warranties: Statements of fact made by parties about their status and capacity

7. Covenants: Ongoing obligations of the parties during the pre-financing period

What sections are optional to include in a Pre Financing Agreement?

1. Security Arrangements: Details of any security to be provided, used when financing is secured

2. Step-In Rights: Rights of financier to take control in certain circumstances

3. Intercreditor Provisions: Arrangements between multiple creditors when more than one financing party is involved

What schedules should be included in a Pre Financing Agreement?

1. Form of Drawdown Notice: Template for requesting funds under the agreement

2. Conditions Precedent Documents: List of required documents and conditions to be satisfied

3. Financial Model: Detailed financial projections and assumptions

4. Form of Security Documents: Templates for security documentation if applicable

5. Project Timeline: Key dates and milestones for the financing arrangement

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok成人版 | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

England and Wales

Document Type

Finance Agreement

Cost

Free to use
Relevant legal definitions





























Clauses






























Industries

Financial Services and Markets Act 2000: Primary legislation that regulates financial services and markets in the UK, establishes the regulatory framework, and defines regulated activities requiring authorization

Consumer Credit Act 1974: Governs consumer credit relationships, including consumer protection provisions, credit agreement requirements, and statutory cooling-off periods

Consumer Rights Act 2015: Sets out unfair terms provisions, transparency requirements, and consumer protection measures for contracts with consumers

FCA Regulations: Regulatory framework set by the Financial Conduct Authority covering authorization requirements, conduct of business rules, and client money rules

Money Laundering Regulations 2017: Establishes requirements for due diligence, risk assessment procedures, and record keeping in financial transactions

English Contract Law Principles: Common law principles governing contract formation including offer, acceptance, consideration, intention to create legal relations, and capacity to contract

Data Protection Act 2018: UK implementation of GDPR, covering data processing requirements, privacy provisions, and data security measures in financial agreements

Unfair Contract Terms Act 1977: Regulates the limitations on exclusion clauses, establishes reasonableness test, and governs business-to-business contractual relationships

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks, 聽Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination, 聽Severance Pay, Governing Law, Entire Agreemen

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