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Business Credit Agreement Template for Switzerland

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Key Requirements PROMPT example:

Business Credit Agreement

"I need a Business Credit Agreement governed by Swiss law for a CHF 5 million revolving credit facility between Swiss Bank AG as lender and TechStart GmbH as borrower, with quarterly interest payments and a maturity date of March 15, 2025."

Document background
The Business Credit Agreement serves as the primary document governing commercial lending relationships in Switzerland, structured in accordance with the Swiss Code of Obligations and Swiss banking regulations. It is typically used when businesses require financing for operations, expansion, or specific projects. The agreement comprehensively addresses facility terms, drawdown mechanics, security arrangements, and ongoing obligations of the borrower. It incorporates Swiss-specific legal requirements while providing flexibility to accommodate various business needs and lending structures. The document is essential for both traditional bank lending and alternative financing arrangements, ensuring proper risk allocation and clear enforcement mechanisms under Swiss law. It can be adapted for various facility types, from simple bilateral loans to complex syndicated facilities.
Suggested Sections

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

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

3. Definitions: Definitions of key terms used throughout the agreement

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

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

6. Utilization: Process and requirements for drawing down the credit facility

7. Repayment: Terms and schedule of repayment, including early repayment provisions

8. Interest: Interest rate, calculation method, and payment periods

9. Fees and Costs: All applicable fees, charges, and cost allocation

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

11. Covenants: Positive and negative obligations of the borrower during the facility period

12. Events of Default: Circumstances constituting default and consequences

13. Security: Details of any security or guarantees provided

14. Communications: Methods and requirements for formal communications between parties

15. Assignment and Transfer: Rights and restrictions regarding transfer of rights under the agreement

16. Governing Law and Jurisdiction: Confirmation of Swiss law application and jurisdiction for disputes

17. Execution: Signature blocks and execution requirements

Optional Sections

1. Accordion Facility: Optional provision for increasing the facility amount under specified conditions

2. Multi-currency Provisions: Include when the facility can be drawn in multiple currencies

3. Tax Gross-up and Indemnities: Detailed tax provisions when cross-border elements exist

4. Bank Accounts: Specific requirements for designated accounts when complex banking arrangements are needed

5. Syndication Provisions: Include when multiple lenders are involved or syndication is contemplated

6. Insurance Requirements: Detailed insurance obligations when specific coverage is required

7. Financial Covenants: Specific financial ratios and tests when additional financial monitoring is required

8. Security Trustee Provisions: Include when security is held by a trustee for multiple lenders

Suggested Schedules

1. Schedule 1 - Conditions Precedent Documents: List of all required documents and conditions to be satisfied

2. Schedule 2 - Utilization Request Form: Standard form for requesting drawdown of the facility

3. Schedule 3 - Repayment Schedule: Detailed amortization schedule if applicable

4. Schedule 4 - Interest Calculation Examples: Examples of interest calculations for clarity

5. Schedule 5 - Security Documents: List and copies of all security documents

6. Schedule 6 - Financial Covenants Calculations: Formulas and examples for financial covenant calculations

7. Appendix A - Company Resolution: Corporate approvals authorizing the facility

8. Appendix B - Compliance Certificate Template: Standard form for periodic compliance certification

Authors

Alex Denne

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

Technology

Real Estate

Construction

Healthcare

Transportation and Logistics

Energy

Telecommunications

Agriculture

Hospitality

Professional Services

Media and Entertainment

Industrial

Consumer Goods

Relevant Teams

Legal

Finance

Treasury

Risk Management

Compliance

Credit Administration

Corporate Banking

Operations

Business Development

Board of Directors

Executive Management

Company Secretariat

Relationship Management

Relevant Roles

Chief Financial Officer

Finance Director

Treasury Manager

Legal Counsel

Corporate Lawyer

Risk Manager

Credit Manager

Relationship Manager

Commercial Banking Officer

Compliance Officer

Business Development Manager

Financial Controller

Managing Director

Board Member

Company Secretary

Account Manager

Credit Analyst

Operations Manager

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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