# BUSINESS LOAN AGREEMENT
Date: 20 February 2025
Parties: Lender: Meadow Finance Ltd (company no. 09112233); Borrower: Calder Studio Ltd (company no. 11884420), registered office 7 King Street, Leeds LS1 2AB
## 1. Facility and purpose
On 20 February 2025 Meadow Finance Ltd agrees to lend Calder Studio Ltd a principal sum of £60,000. The Borrower must use it only for equipment and working capital for its Leeds design studio, not for personal expenditure. The loan is unsecured; no director guarantee is given. The Lender will transfer the principal to the Borrower's nominated business account within two business days after both parties sign and the Borrower supplies its bank details.
## 2. Interest and repayment
Interest is fixed at a nominal 6% per annum on the outstanding principal, applied monthly at 0.5% (6% divided by 12) to the reducing balance, with each month's interest rounded to the nearest penny; there is no variable-rate adjustment. Using the standard payment formula £60,000 × 0.005 ÷ [1 − (1.005)^−24] gives £2,659.2366, rounded to an equal scheduled payment of £2,659.24. Repayment begins on 31 March 2025: payments 1 to 23 are £2,659.24, and the 24th and final payment on 28 February 2027 is adjusted to £2,659.16 to clear the penny-rounded balance. The scheduled total is £63,821.68. The parties may agree an early repayment in writing without implying that a statutory or market rate applies.
## 3. Representations and undertakings
The Borrower represents on signing and on each payment date that it is duly incorporated, has authority to enter this agreement, has provided information that is accurate in all material respects, and is not insolvent to its knowledge. It will keep required accounts and records, promptly notify the Lender of a material change affecting repayment, and comply with applicable law. These are contractual statements, not a guarantee of profitability or eligibility for finance.
## 4. Default and procedure
An event of default occurs if an instalment remains unpaid for 10 business days after written notice, the Borrower materially breaches this agreement and fails to remedy within 15 business days after notice, or the Borrower enters an insolvency process. The Lender may, after the applicable notice and cure period, demand the outstanding principal and accrued interest and pursue lawful remedies. Before enforcement, the Lender should use any applicable pre-action requirements and current court rules; no automatic possession or recovery outcome is promised.
## 5. Law and execution
This agreement and any non-contractual obligations are governed by the law of England and Wales. The courts of England and Wales have jurisdiction, subject to any mandatory current procedural rule. Each party confirms it has had the opportunity to obtain independent legal and financial advice. Signed for Meadow Finance Ltd by Helen Moore, Director: signature and date 20 February 2025. Signed for Calder Studio Ltd by James Calder, Director: signature and date 20 February 2025. Each signatory confirms authority; electronic execution is effective only if permitted by applicable law.