Document background
The Credit Agreement For Supply of Goods is a specialized financing document used in Pakistani commercial transactions where a party requires credit facilities to finance the purchase of goods from suppliers. This document is particularly relevant in scenarios involving large-scale procurement, regular supply arrangements, or significant one-time purchases requiring structured financing. The agreement must comply with Pakistani banking regulations, including State Bank of Pakistan guidelines, and can be structured under either conventional or Islamic banking principles. It typically includes detailed provisions for both the credit facility (such as facility limits, interest/profit rates, and security arrangements) and the supply arrangement (including specifications, delivery terms, and quality standards). The document is commonly used in various industries from manufacturing to retail, where businesses need to finance their supply chain operations while ensuring proper security and risk allocation between all parties involved.
