Document background
The Commercial Finance Agreement serves as a fundamental instrument in South African business financing, providing a legally robust framework for commercial lending transactions. It is typically used when businesses require substantial financing for operations, expansion, or specific projects, and must comply with South African banking regulations, the National Credit Act, and financial sector legislation. The document outlines the complete financing relationship, including facility terms, security arrangements, representations and warranties, and compliance requirements. It is particularly important in the South African context where specific regulatory requirements, such as FICA compliance and National Credit Act provisions, must be incorporated. The agreement is designed to protect both lender and borrower interests while ensuring enforceability under South African law.
