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Supplier Credit Agreement
"I need a Supplier Credit Agreement for my manufacturing company to extend €500,000 credit to a Dutch industrial customer, with quarterly repayment terms starting March 2025, including security over the customer's equipment and a parent company guarantee."
1. Parties: Identification of the supplier (creditor) and the customer (debtor), including full legal names, registration numbers, and registered addresses
2. Background: Context of the credit arrangement, including the business relationship between parties and purpose of the credit facility
3. Definitions: Definitions of key terms used throughout the agreement
4. Credit Facility: Details of the credit amount, purpose, and availability period
5. Interest and Fees: Specification of interest rate(s), calculation method, payment frequency, and any applicable fees
6. Repayment Terms: Schedule and methods of repayment, including minimum payments and early repayment provisions
7. Security: Details of any security or collateral provided for the credit facility
8. Representations and Warranties: Standard declarations by the borrower about their legal and financial status
9. Covenants: Ongoing obligations of the borrower during the credit period
10. Events of Default: Circumstances that constitute default and consequences thereof
11. Termination: Conditions and process for terminating the agreement
12. Notices: Communication requirements and contact details
13. Governing Law and Jurisdiction: Confirmation of Dutch law application and jurisdiction for disputes
14. Signatures: Execution blocks for all parties
1. Credit Insurance: Include when credit insurance is required or provided as part of the arrangement
2. Parent Company Guarantee: Include when a parent company guarantee is required as additional security
3. Assignment and Transfer: Include when either party needs the right to assign or transfer their rights under the agreement
4. Force Majeure: Include for longer-term credit arrangements where external events might affect performance
5. Sanctions and Anti-Money Laundering: Include for international transactions or high-value credit facilities
6. Data Protection: Include when personal data processing is significant part of the arrangement
7. Multi-currency Provisions: Include when credit can be drawn in multiple currencies
8. Financial Covenants: Include for larger credit facilities requiring ongoing financial performance metrics
1. Schedule 1 - Credit Limit and Payment Terms: Detailed breakdown of credit limits, payment schedules, and specific payment terms
2. Schedule 2 - Interest Rate Calculation: Detailed methodology for calculating interest, including examples if necessary
3. Schedule 3 - Security Details: Specific details of any security or collateral provided
4. Schedule 4 - Conditions Precedent: List of documents and conditions required before credit facility becomes available
5. Schedule 5 - Form of Drawdown Request: Standard form for requesting credit under the facility
6. Schedule 6 - Compliance Certificate: Template for periodic compliance certification if required
7. Appendix A - Contact Details: Detailed contact information for all relevant parties and departments
8. Appendix B - Standard Terms and Conditions: General terms and conditions applicable to the credit facility
Authors
Manufacturing
Wholesale Trade
Retail
Construction
Technology
Industrial Supply
Automotive
Electronics
Food and Beverage
Chemical Industry
Pharmaceuticals
Telecommunications
Energy
Agriculture
Mining and Resources
Finance
Legal
Procurement
Commercial
Credit Control
Treasury
Risk Management
Operations
Supply Chain
Accounts Receivable
Business Development
Chief Financial Officer
Finance Director
Credit Manager
Commercial Director
Procurement Manager
Financial Controller
Treasury Manager
Account Manager
Risk Manager
Legal Counsel
Contracts Manager
Supply Chain Manager
Credit Control Supervisor
Business Development Manager
Operations Director
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