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Credit Facility Agreement

A completed revolving credit facility covering drawdowns, interest, security, covenants, defaults and enforcement safeguards.

Jurisdiction: England and Wales - completed fictional worked example

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Important: This sample provides general legal information only and is not legal advice. Check the law, prescribed forms and signing requirements that apply to your exact jurisdiction and circumstances before use.

# CREDIT FACILITY AGREEMENT

Date: 30 January 2031

Parties: Crownmere Bank plc and Alder & Finch Foods Limited

## 1. Purpose and parties

Crownmere Bank makes a £750,000 revolving facility available to Alder & Finch Foods Limited until 30 June 2034. The borrower may draw for working capital and approved stock purchases, not dividends, acquisitions or unlawful purposes.

## 2. Facts, scope and terms

Each drawdown requires two business days' notice, a requested amount, account and confirmation that no default is continuing. The commitment reduces by repayments but cannot exceed the limit; the bank may reject a request that fails a condition and must record the utilisation.

## 3. Process and responsibilities

Interest is SONIA compounded in arrears plus 3.25% per annum, with a 1% unused commitment fee and default interest capped at the lawful amount. Interest and principal are paid monthly from the nominated account; voluntary prepayment is permitted with accrued interest.

## 4. Evidence, records and safeguards

Security consists of an all-assets debenture, fixed charges over specified accounts and a parent guarantee, to be executed and registered where required. Alder & Finch must maintain insurance, accounts, tax compliance, financial covenant reporting and permitted ownership; it may not create equal-ranking security without consent.

## 5. Review, escalation and outcome

Events of default include non-payment after a short cure period, insolvency, material misrepresentation, invalid security and a covenant breach not remedied within 15 business days. The bank must give a default notice where practicable and may cancel, demand repayment and enforce security subject to law.

## 6. Reservations and practical protections

The borrower can request a consent or waiver in writing, but silence is not consent. Both parties keep records, protect customer data and cooperate on proportionate KYC and sanctions checks. No term permits a unilateral increase of the facility or an unlawful penalty.

## 7. England and Wales law and completion

England and Wales law and the courts of England and Wales apply. Notices to the registered office or facility email are separate permitted methods, effective on delivery or confirmed email. The parties sign on 30 January 2031; the debenture is delivered separately for registration.

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