Document background
The Inter Company Loan Agreement is essential for documenting financial arrangements between related corporate entities in Singapore. It's commonly used when one company within a corporate group provides funding to another, whether for working capital, expansion, or specific projects. The agreement must comply with Singapore's strict regulatory framework, including the Companies Act, Banking Act, and relevant tax regulations. It typically covers loan amount, interest calculations, repayment terms, events of default, and any security arrangements, while ensuring compliance with transfer pricing rules and corporate benefit requirements.
