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Business Loan Agreement Template for Switzerland

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Key Requirements PROMPT example:

Business Loan Agreement

"I need a Business Loan Agreement under Swiss law for a CHF 2 million loan from Credit Bank AG to my manufacturing company, with quarterly repayments over 5 years starting March 2025, including standard security provisions for equipment collateral."

Document background
The Business Loan Agreement is a crucial financial instrument used in Switzerland when a business entity seeks to obtain funding from a financial institution. This document is essential for commercial lending transactions governed by Swiss law, particularly under the Swiss Code of Obligations (OR/CO) and Swiss banking regulations. It is typically used when businesses require capital for expansion, operations, asset acquisition, or other commercial purposes. The agreement comprehensively covers loan terms, interest calculations, security arrangements, representations and warranties, covenants, and default provisions. It must comply with Swiss federal and cantonal laws regarding commercial lending, including requirements for interest rate calculations, security registration, and enforcement procedures. The document is particularly important for ensuring legal certainty and protecting both lender and borrower interests in commercial financing transactions.
Suggested Sections

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

2. Background: Context of the loan agreement, including the purpose of the loan and any relevant business relationship between the parties

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

4. Loan Amount and Purpose: Specification of the loan amount, currency, and permitted use of funds

5. Interest Rate and Calculation: Details of the interest rate, calculation method, and payment periods

6. Drawdown: Conditions and procedures for accessing the loan funds

7. Repayment Terms: Schedule and methods of repayment, including principal and interest payments

8. Security and Collateral: Details of any assets or guarantees securing the loan

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

10. Covenants: Ongoing obligations of the borrower during the loan term

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

12. Fees and Costs: All fees, charges, and costs associated with the loan

13. Governing Law and Jurisdiction: Confirmation of Swiss law governance and jurisdiction for disputes

14. Notices: Methods and addresses for formal communications between parties

15. Execution: Signature blocks and execution requirements

Optional Sections

1. Syndication Provisions: Required when multiple lenders are involved or if the loan may be syndicated in the future

2. Currency Conversion: Needed for loans involving multiple currencies or foreign exchange considerations

3. Insurance Requirements: Detailed when specific insurance coverage is required for the borrower or collateral

4. Parent Company Guarantee: Include when a parent company guarantee is part of the security structure

5. Subordination Provisions: Required when the loan needs to be subordinated to other debt

6. Tax Provisions: Detailed tax clauses needed for cross-border loans or specific tax implications

7. Change of Control: Include when restrictions on ownership changes are required

8. Assignment and Transfer: Detailed provisions for when either party may want to transfer their rights or obligations

Suggested Schedules

1. Repayment Schedule: Detailed amortization table showing payment dates and amounts

2. Conditions Precedent: List of conditions that must be satisfied before drawdown

3. Form of Drawdown Request: Template for the borrower to request loan disbursements

4. Security Documents: List and copies of all security documentation

5. Financial Covenants: Detailed financial ratios and calculations the borrower must maintain

6. Permitted Security Interests: List of existing or permitted security interests on borrower's assets

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

8. Fee Schedule: Detailed breakdown of all applicable fees and charges

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

Real Estate

Technology

Healthcare

Retail

Construction

Agriculture

Hospitality

Transportation and Logistics

Energy

Telecommunications

Professional Services

Industrial

Media and Entertainment

Relevant Teams

Legal

Finance

Treasury

Risk Management

Compliance

Corporate Banking

Credit Analysis

Operations

Commercial Banking

Business Development

Corporate Secretariat

Executive Management

Relevant Roles

Chief Financial Officer

Finance Director

Treasury Manager

Corporate Lawyer

Legal Counsel

Relationship Manager

Credit Officer

Risk Manager

Commercial Banking Manager

Business Development Manager

Financial Controller

Compliance Officer

Corporate Secretary

Banking Operations Manager

Credit Risk Analyst

Loan Officer

Managing Director

Chief Executive Officer

Chief Legal Officer

Financial 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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