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The Working Capital Loan Agreement is essential for businesses seeking short to medium-term financing to manage their operational cash flow needs under Hong Kong law. This document is typically used when companies require funding for day-to-day operations, inventory purchases, payroll, or other working capital requirements. The agreement must comply with Hong Kong's regulatory framework, particularly the Banking Ordinance (Cap. 155) and Money Lenders Ordinance (Cap. 163), while incorporating market-standard provisions for financial covenants, security arrangements, and enforcement mechanisms. It's structured to protect both lender and borrower interests while ensuring operational flexibility for the borrowing company.

1. Parties: Identification of the lender and borrower with full legal names and registration details

2. Background: Context of the loan facility and purpose of the working capital financing

3. Definitions and Interpretation: Defined terms, interpretation rules, and construction principles

4. The Facility: Key terms of the loan facility including amount, purpose, and availability period

5. Conditions Precedent: Prerequisites that must be satisfied before loan drawdown

6. Drawdown: Procedures and requirements for requesting and obtaining loan disbursements

7. Interest: Interest rate, calculation method, payment dates, and default interest provisions

8. Repayment: Terms for repayment of principal, prepayment rights, and payment mechanics

9. Representations and Warranties: Borrower's confirmations regarding its status, capacity, and financial condition

10. Covenants: Positive and negative obligations of the borrower during the loan term

11. Events of Default: Circumstances constituting default and consequences thereof

12. Security: Description of any security arrangements securing the loan

13. Changes to Parties: Rules regarding assignment and transfer rights

14. Payments: Payment mechanics, currency, and tax provisions

15. Notices: Communication requirements and contact details

16. General Provisions: Boilerplate clauses including severability, whole agreement, and amendments

17. Governing Law and Jurisdiction: Hong Kong law as governing law and jurisdiction provisions