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Supplier Credit Agreement Template for Netherlands

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Key Requirements PROMPT example:

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."

Document background
The Supplier Credit Agreement is a critical commercial document used when a supplier wishes to extend credit facilities to their business customers in the Netherlands. This agreement is particularly relevant in business-to-business transactions where goods or services are provided on credit terms rather than immediate payment. The document, governed by Dutch law and complying with both Dutch Civil Code and relevant EU regulations, establishes the framework for the credit relationship, including credit limits, payment terms, security arrangements, and default remedies. It's essential for managing credit risk in commercial relationships and provides legal protection for both the supplier extending credit and the customer receiving it. The agreement needs to comply with Dutch financial regulations and may require consideration of specific sector regulations depending on the industry context.
Suggested Sections

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

Optional Sections

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

Suggested Schedules

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

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

Manufacturing

Wholesale Trade

Retail

Construction

Technology

Industrial Supply

Automotive

Electronics

Food and Beverage

Chemical Industry

Pharmaceuticals

Telecommunications

Energy

Agriculture

Mining and Resources

Relevant Teams

Finance

Legal

Procurement

Commercial

Credit Control

Treasury

Risk Management

Operations

Supply Chain

Accounts Receivable

Business Development

Relevant Roles

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

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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