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Working Capital Facility Agreement Template for Australia

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Key Requirements PROMPT example:

Working Capital Facility Agreement

"I need a Working Capital Facility Agreement for my manufacturing company to secure a AUD 5 million revolving credit facility from ANZ Bank, with quarterly financial covenants and security over inventory and receivables, to be executed by March 2025."

Document background
The Working Capital Facility Agreement is a fundamental financing document used in Australian business operations to establish a flexible funding arrangement between a lender and borrower. This agreement is particularly suited for businesses requiring ongoing access to funds for operational expenses, inventory purchases, or managing cash flow cycles. The document complies with Australian banking and financial services regulations, including the Banking Act 1959 (Cth) and National Consumer Credit Protection Act 2009 (Cth). It typically includes provisions for revolving credit facilities, drawdown mechanisms, security arrangements, and financial covenants, all structured within the Australian legal framework. The agreement is essential for businesses seeking to maintain adequate liquidity while managing seasonal fluctuations or growth opportunities.
Suggested Sections

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

2. Background: Context of the facility arrangement and purpose of the agreement

3. Definitions and Interpretation: Comprehensive definitions of terms used throughout the agreement and interpretation rules

4. The Facility: Details of the facility type, amount, purpose and availability period

5. Conditions Precedent: Prerequisites that must be satisfied before the facility becomes available

6. Drawdown: Procedures and requirements for drawing down the facility

7. Interest and Fees: Interest calculation method, rates, payment dates and applicable fees

8. Repayment and Prepayment: Terms for regular repayments and early repayment options

9. Representations and Warranties: Statements of fact and assurances given by the borrower

10. Undertakings: Positive and negative obligations of the borrower during the facility term

11. Events of Default: Circumstances that constitute default and consequences

12. Changes to Parties: Rules regarding assignment and transfer of rights and obligations

13. Administration: Operational aspects including notices, calculations, and payments

14. Governing Law and Jurisdiction: Law governing the agreement and courts having jurisdiction

15. Execution: Execution blocks and signing requirements

Optional Sections

1. Security: Include when the facility is secured, detailing the security arrangement and enforcement rights

2. Guarantee: Include when there are guarantors providing additional support for the borrower's obligations

3. Review Events: Include for facilities requiring periodic review or with specific trigger events

4. Market Disruption: Include for facilities with variable rates to address market disruption scenarios

5. Increased Costs and Tax Provisions: Include for longer-term facilities or where regulatory changes might impact costs

6. Multi-currency Provisions: Include if the facility can be drawn in multiple currencies

7. Accordion Feature: Include if the facility amount can be increased under specified conditions

8. Financial Covenants: Include when specific financial metrics must be maintained

9. Special Drawing Conditions: Include for industry-specific or purpose-specific facilities

Suggested Schedules

1. Facility Particulars: Detailed terms of the facility including limits, rates, and fees

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

3. Form of Drawdown Notice: Template for borrower to request drawings under the facility

4. Calculation of Interest and Fees: Detailed methodology for calculating interest and fees

5. Form of Compliance Certificate: Template for periodic compliance reporting

6. Security Documents: List and copies of security documents if facility is secured

7. Permitted Security Interests: List of security interests allowed under the facility

8. Financial Covenants Calculations: Methodology for calculating financial covenants

9. Authorized Representatives: List of persons authorized to act on behalf of the parties

Authors

Alex Denne

Head of Growth (Open Source Law) @ ¶¶Òõ¶ÌÊÓƵ | 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

Banking and Financial Services

Manufacturing

Retail

Wholesale Trade

Construction

Mining and Resources

Agriculture

Technology

Healthcare

Professional Services

Transport and Logistics

Real Estate

Hospitality

Relevant Teams

Legal

Finance

Treasury

Credit

Risk Management

Corporate Banking

Operations

Compliance

Corporate Secretariat

Executive Management

Relevant Roles

Chief Financial Officer

Finance Director

Treasury Manager

Financial Controller

Corporate Lawyer

Legal Counsel

Relationship Manager (Banking)

Credit Manager

Risk Manager

Company Secretary

Managing Director

Chief Executive Officer

Commercial Director

Operations Manager

Account Manager (Banking)

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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