Business Loan Agreement Template

DATE: [DD MONTH YYYY]

PARTIES
(1) [PARTY A LEGAL NAME], company number [NUMBER], whose registered office is [ADDRESS] (Party A); and
(2) [PARTY B LEGAL NAME], company number [NUMBER], whose registered office is [ADDRESS] (Party B).

Each signatory confirms authority to bind the relevant party.

1. LOAN
The Lender agrees to lend and the Borrower agrees to borrow [AMOUNT] [GBP / EUR / USD] on [DATE], subject to any conditions in Schedule 1.

2. PURPOSE
The Borrower shall use the loan solely for [BUSINESS PURPOSE] and not for an unlawful, sanctioned or undisclosed purpose.

3. INTEREST AND FEES
Interest accrues at [FIXED RATE / REFERENCE RATE PLUS MARGIN] calculated on [BASIS]. Fees are [DETAIL]. Check enforceability, tax and regulatory requirements.

4. REPAYMENT
The Borrower shall repay [INSTALMENTS / BULLET] on the dates in Schedule 1 to the nominated account. Voluntary prepayment is [PERMITTED / SUBJECT TO TERMS].

5. REPRESENTATIONS
Each party has authority. The Borrower confirms information supplied is materially accurate, it is not insolvent and the agreement does not breach another binding obligation.

6. UNDERTAKINGS
The Borrower shall keep proper records, comply with law, notify material default or insolvency and provide [FINANCIAL / BUSINESS] information at [INTERVAL].

7. DEFAULT
Events include non-payment after [GRACE PERIOD], material breach, material misrepresentation, insolvency and invalidity of agreed security. On default the Lender may accelerate only as lawfully provided.

8. SECURITY AND PRIORITY
The loan is [UNSECURED / SECURED BY SPECIFIC DOCUMENT]. Security, guarantees, registration, priority and enforcement require separate professional drafting and perfection.

SCHEDULE 1 — REPAYMENT
Advance date / conditions: [DETAIL]
Principal: [DETAIL]
Interest calculation: [DETAIL]
Payment dates and amounts: [DETAIL]
Final maturity: [DETAIL]
Permitted prepayment: [DETAIL]

GENERAL
Notices must be sent to the addresses and emails stated in Schedule 2. Neither party may assign this agreement without written consent, except as expressly agreed. This agreement and its schedules contain the entire agreement on its subject. A variation must be signed by authorised representatives. If a provision is invalid, the remainder continues. Delay in enforcement is not a waiver. No third party has a right to enforce this agreement unless stated.

GOVERNING LAW AND DISPUTES
This agreement is governed by the law of England and Wales [CHANGE IF REQUIRED]. The courts of England and Wales have exclusive jurisdiction [OR INSERT AGREED ARBITRATION / MEDIATION PROCESS].

SIGNATURES
For Party A: [NAME / TITLE / SIGNATURE / DATE]
For Party B: [NAME / TITLE / SIGNATURE / DATE]

SCHEDULE 2 — NOTICES AND PAYMENT
Party A notice email: [EMAIL]
Party B notice email: [EMAIL]
Payment currency: [GBP / EUR / USD]
Account name: [LEGAL NAME]
Account / IBAN: [DETAILS]
SWIFT / BIC: [CODE]
Payment reference: [REFERENCE]