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Business Loan Contract
"I need a Business Loan Contract for a manufacturing company borrowing SGD 2 million from a local Singapore bank, with quarterly repayments over 3 years starting from March 2025, secured against company equipment and requiring personal guarantees from two directors."
1. Parties: Identification of lender and borrower with full legal names and addresses
2. Background: Context of the loan and purpose
3. Definitions: Key terms used throughout the agreement
4. Loan Amount and Purpose: Specific amount being borrowed and its intended use
5. Interest Rate: Interest rate, calculation method, and payment terms
6. Repayment Terms: Schedule of repayments, including principal and interest
7. Security: Details of any collateral or guarantees
8. Events of Default: Circumstances constituting default and consequences
9. Representations and Warranties: Borrower's declarations regarding their business and capacity
1. Conditions Precedent: Pre-conditions for loan disbursement - used for complex loans or when specific conditions must be met before disbursement
2. Covenants: Ongoing obligations of the borrower - used for larger loans or when specific business performance metrics need to be maintained
3. Insurance Requirements: Required insurance coverage - used when specific insurance is required to protect the loan
4. Change of Control: Provisions regarding change in borrower's ownership - used for loans to companies where ownership stability is important
1. Repayment Schedule: Detailed breakdown of repayment dates and amounts
2. Security Documents: List and copies of security documents
3. Conditions Precedent Documents: List of required documents and conditions
4. Form of Drawdown Notice: Template for requesting loan disbursement
5. Financial Covenants Schedule: Detailed financial metrics and reporting requirements
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