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Credit Terms Agreement Template for Ireland

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Key Requirements PROMPT example:

Credit Terms Agreement

"I need a Credit Terms Agreement for my wholesale distribution business to extend credit to corporate customers, with a maximum credit limit of €50,000 and payment terms of 30 days, including provisions for personal guarantees from company directors."

Document background
The Credit Terms Agreement serves as a fundamental document for establishing and managing credit relationships in Ireland. It is primarily used when a business or financial institution extends credit to customers, whether they are businesses or consumers. The agreement must comply with Irish financial regulations, including the Consumer Credit Act 1995 and relevant EU directives, while providing clear terms for credit limits, interest calculations, payment obligations, and default consequences. This document is essential for protecting both creditor and debtor interests, ensuring transparency in financial dealings, and maintaining regulatory compliance in credit arrangements. It includes provisions for credit assessment, ongoing monitoring, and risk management, making it suitable for various commercial and consumer credit scenarios in the Irish market.
Suggested Sections

1. Parties: Identification of the credit provider and the customer/borrower, including full legal names and addresses

2. Background: Context of the credit arrangement and relationship between the parties

3. Definitions: Definitions of key terms used throughout the agreement, including financial and technical terms

4. Credit Facility: Details of the credit facility, including credit limit, purpose, and type of facility

5. Interest and Charges: Specification of interest rates, calculation methods, and all applicable fees and charges

6. Payment Terms: Payment obligations, including payment schedule, methods of payment, and minimum payment requirements

7. Credit Review and Variation: Terms for periodic credit review and circumstances under which terms may be varied

8. Security: Details of any security required and maintenance of security

9. Representations and Warranties: Standard representations and warranties from both parties

10. Events of Default: Definition of default events and consequences

11. Termination: Circumstances and procedures for termination of the agreement

12. Notices: Methods and requirements for formal communications between parties

13. Governing Law: Confirmation of Irish law as governing law and jurisdiction

Optional Sections

1. Group Companies: Include when credit terms extend to related companies or subsidiaries

2. Credit Insurance: Include when credit insurance is required or provided as part of the arrangement

3. Personal Guarantee: Include when personal guarantees are required from directors or other parties

4. Set-off Rights: Include when the credit provider has rights to set off debts against other accounts

5. Electronic Communications: Include when parties agree to electronic invoicing and communications

6. Data Protection: Include detailed data protection terms when significant personal data processing is involved

7. Anti-Money Laundering: Include detailed AML provisions for high-risk or high-value arrangements

8. Force Majeure: Include when specific force majeure protections are required

Suggested Schedules

1. Schedule 1 - Pricing Schedule: Detailed breakdown of interest rates, fees, and charges

2. Schedule 2 - Credit Limit Calculation: Method and factors for calculating credit limit

3. Schedule 3 - Payment Schedule: Detailed payment terms and dates if applicable

4. Schedule 4 - Security Details: Specific details of security arrangements if applicable

5. Appendix A - Credit Application Form: Standard form for credit application and assessment

6. Appendix B - Personal Guarantee Form: Standard form for personal guarantees if required

7. Appendix C - Standard Information Form: European Consumer Credit Information form as required by EU regulations

8. Appendix D - Direct Debit Mandate: Standard form for setting up direct debit payments

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈ˰æ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions













































Clauses


























Relevant Industries

Financial Services

Banking

Retail

Manufacturing

Construction

Technology

Professional Services

Wholesale Trade

Import/Export

Healthcare

Agriculture

Transportation

Telecommunications

Energy

Real Estate

Relevant Teams

Legal

Finance

Credit Control

Risk Management

Compliance

Treasury

Commercial

Accounts Receivable

Business Development

Operations

Relevant Roles

Credit Manager

Financial Controller

Chief Financial Officer

Credit Risk Officer

Commercial Director

Finance Director

Treasury Manager

Accounts Receivable Manager

Credit Control Supervisor

Legal Counsel

Compliance Officer

Risk Manager

Business Development Manager

Commercial Manager

Financial Analyst

Credit Analyst

Industries










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,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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