Document background
The Inventory Financing Agreement is a specialized financing document used when businesses require working capital funding secured against their inventory. This agreement is particularly relevant in Switzerland's commercial landscape, where businesses often seek asset-based lending solutions. The document comprehensively addresses the requirements of Swiss secured transactions law, including specific provisions from the Swiss Code of Obligations and Civil Code. It establishes the framework for the financing facility, including borrowing base calculations, advance rates, inventory monitoring requirements, and security arrangements. The agreement is designed to protect the lender's interests while providing the borrower with necessary working capital flexibility, incorporating Swiss law requirements for creating and perfecting security interests in movable property.
