The Revolving Promissory Note is commonly used in Australian business financing where parties require flexible, ongoing access to credit while maintaining the simplified structure and enforceability of a promissory note. This document is particularly useful for businesses with cyclical cash flows or varying capital needs, as it allows for multiple drawdowns and repayments within an agreed credit limit. The instrument must comply with Australian federal legislation, particularly the Bills of Exchange Act 1909 (Cth), and may also be subject to state-specific requirements. It includes essential elements such as the promise to pay, credit limit, interest provisions, drawdown mechanics, and repayment terms. The revolving nature distinguishes it from traditional promissory notes by allowing the credit to be reused as it is repaid, making it suitable for working capital financing, seasonal business needs, or ongoing operational requirements.

1. Parties: Identification of maker (borrower) and payee (lender), including full legal names, ABNs/ACNs if applicable, and addresses

2. Background: Brief context of the revolving credit arrangement and the purpose of the note

3. Definitions: Key terms including Credit Limit, Interest Rate, Draw Down, Repayment, Revolving Facility Period

4. Promise to Pay: Unconditional promise to pay principal and interest, essential for validity under Bills of Exchange Act

5. Revolving Facility Terms: Terms governing the revolving nature, including credit limit, availability period, and redraw rights

6. Interest Provisions: Interest rate, calculation method, payment frequency, and default interest provisions

7. Drawdown Mechanics: Procedures and conditions for accessing the revolving facility

8. Repayment Terms: Schedule of payments, prepayment rights, and application of payments

9. Events of Default: Circumstances triggering acceleration of payment obligations

10. Enforcement: Rights and remedies upon default or breach