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Business To Business Loan Agreement for the United Kingdom

Business To Business Loan Agreement Template for England and Wales

A Business to Business Loan Agreement under English and Welsh law is a legally binding document that establishes the terms and conditions under which one business entity lends money to another. The agreement covers essential elements including loan amount, interest rates, repayment terms, security arrangements, and default provisions. It is governed by English law principles and provides both parties with clear rights and obligations while ensuring compliance with relevant financial regulations and corporate lending requirements.

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Business To Business Loan Agreement

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What is a Business To Business Loan Agreement?

The Business To Business Loan Agreement is essential for commercial lending transactions in England and Wales, providing a comprehensive framework for lending between business entities. It is commonly used when one business requires funding for expansion, working capital, asset acquisition, or other commercial purposes. The agreement includes detailed provisions for loan disbursement, repayment terms, security arrangements, and remedies in case of default, while ensuring compliance with English corporate and financial services law. This document is particularly important for protecting both lender and borrower interests in commercial financing transactions.

What sections should be included in a Business To Business Loan Agreement?

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

2. Background: Context of the loan and relationship between parties

3. Definitions: Key terms used throughout the agreement

4. Loan Amount and Purpose: Specification of loan amount and permitted use

5. Interest Rate and Calculations: Interest rate, calculation method, and payment terms

6. Repayment Terms: Schedule of repayments and method

7. Events of Default: Circumstances constituting default and consequences

8. Representations and Warranties: Statements of fact by borrower

What sections are optional to include in a Business To Business Loan Agreement?

1. Security: Details of any assets securing the loan - include when loan is secured

2. Guarantees: Terms of any guarantees provided - include when third-party guarantees are required

3. Financial Covenants: Financial performance requirements - include for larger loans or when specific financial metrics must be maintained

What schedules should be included in a Business To Business Loan Agreement?

1. Repayment Schedule: Detailed schedule of repayment dates and amounts

2. Security Documents: Details of security arrangements and charged assets

3. Conditions Precedent: List of documents and conditions required before drawdown

4. Form of Drawdown Notice: Template for requesting loan disbursement

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

England and Wales

Publisher

Ƶ

Document Type

Finance Agreement

Cost

Free to use
Relevant legal definitions





































Clauses






























Industries

Companies Act 2006: Primary legislation governing company documentation, directors' duties and authority to enter into loan agreements, and registration requirements for charges

Law of Property Act 1925: Legislation covering secured loans against property and requirements for creation and registration of charges

Financial Services and Markets Act 2000: Establishes regulatory framework for financial services and licensing requirements for lenders

Consumer Credit Act 1974: While primarily for consumer loans, contains provisions that may be relevant for small business borrowers

Common Law Contract Principles: Fundamental principles of contract formation including offer, acceptance, consideration, and intention to create legal relations

Partnership Act 1890: Legislation governing partnerships and relevant when lending to partnership entities

Insolvency Act 1986: Contains provisions relating to corporate insolvency and loan recovery procedures

Money Laundering Regulations 2017: Establishes due diligence requirements and Know Your Customer (KYC) obligations for financial transactions

Late Payment of Commercial Debts (Interest) Act 1998: Governs statutory interest provisions and payment terms for commercial debts

FCA Regulations: Financial Conduct Authority regulations applicable to specific types of lending activities

PRA Requirements: Prudential Regulation Authority requirements applicable to regulated lending entities

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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