Working Capital Facility Agreement for South Africa

Working Capital Facility Agreement Template for South Africa

A comprehensive legal agreement governed by South African law that establishes the terms and conditions for a revolving working capital facility between a lender and borrower. The agreement details the facility amount, interest rates, drawdown mechanisms, repayment terms, security arrangements, and borrower obligations, all while ensuring compliance with South African banking regulations, including the National Credit Act and Financial Sector Regulation Act. It includes provisions for financial covenants, representations and warranties, and events of default, tailored to the South African legal and business environment.

Your data doesn't train Genie's AI

You keep IP ownership of your information

Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.

Download a Standard Template

4.6 / 5
4.8 / 5
Access for free
OR

Alternatively: Run an advanced review of an existing
Working Capital Facility Agreement

Let Genie AI's market-leading legal AI identify missing terms, unusual language, compliance issues and more - in just seconds.
Upload your Doc

What is a Working Capital Facility Agreement?

The Working Capital Facility Agreement is a crucial financing document used in South Africa when businesses require flexible funding for their day-to-day operations, inventory management, or short-term working capital needs. This agreement is structured to comply with South African banking regulations and credit laws, including the National Credit Act and Financial Sector Regulation Act. It establishes a revolving credit facility that allows borrowers to draw down funds as needed, up to an agreed limit, with the ability to repay and reborrow during the facility term. The document includes comprehensive provisions covering facility terms, security arrangements, financial covenants, and borrower obligations, making it suitable for various business sectors operating in the South African market.

What sections should be included in a Working Capital Facility Agreement?

1. Parties: Identification of the lender, borrower and any guarantors

2. Background: Context of the facility and relationship between the parties

3. Definitions and Interpretation: Defined terms and interpretation rules used throughout the agreement

4. The Facility: Details of the working capital facility including amount, purpose, and availability

5. Interest and Fees: Interest calculation, payment terms, and applicable fees

6. Drawdown: Conditions and procedures for drawing down the facility

7. Repayment: Terms and timing of repayment obligations

8. Security: Overview of security arrangements and guarantees

9. Representations and Warranties: Statements of fact and assurances given by the borrower

10. Undertakings: Positive and negative obligations of the borrower during the facility term

11. Events of Default: Circumstances constituting default and consequences

12. Changes to Parties: Rules regarding assignment and transfer of rights

13. Notices: Communication requirements and contact details

14. General Provisions: Miscellaneous legal provisions including governing law and jurisdiction

What sections are optional to include in a Working Capital Facility Agreement?

1. Accordion Facility: Optional provision for increasing the facility amount under specified conditions

2. Multi-currency Provisions: Include when the facility can be drawn in multiple currencies

3. Tax Gross-up and Indemnities: Detailed tax provisions required for cross-border facilities or complex tax structures

4. Increased Costs: Provisions dealing with regulatory changes affecting the lender's costs

5. Market Disruption: Provisions handling interest rate benchmark disruptions

6. Group Borrower Provisions: Include when multiple group companies can access the facility

7. Bank Accounts: Required when specific account arrangements or cash management systems are needed

What schedules should be included in a Working Capital Facility Agreement?

1. Conditions Precedent: List of documents and conditions required before first drawdown

2. Form of Drawdown Notice: Template for borrower to request facility drawdown

3. Calculation of Interest and Fees: Detailed methodology for calculating interest and fees

4. Form of Compliance Certificate: Template for periodic financial compliance reporting

5. Security Documents: List and copies of all security documents

6. Permitted Security: List of security interests permitted under the facility

7. Form of Transfer Certificate: Template for transferring rights under the facility

8. Financial Covenants: Detailed financial covenants and calculation methodologies

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

South Africa

Publisher

Genie AI

Document Type

Financing Agreement

Cost

Free to use
Relevant legal definitions
Clauses
Relevant Industries

Banking and Financial Services

Manufacturing

Retail

Construction

Mining

Agriculture

Technology

Healthcare

Logistics and Transportation

Real Estate

General Trading

Industrial Services

Relevant Teams

Legal

Finance

Treasury

Credit Risk

Compliance

Operations

Commercial

Corporate Banking

Risk Management

Company Secretariat

Relevant Roles

Chief Financial Officer

Finance Director

Treasury Manager

Financial Controller

Corporate Lawyer

Legal Counsel

Relationship Manager

Credit Manager

Risk Manager

Company Secretary

Commercial Director

Managing Director

Operations Director

Financial Manager

Compliance Officer

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

Find the exact document you need

Commercial Loan Contract

A South African law-governed agreement establishing terms for commercial lending between a financial institution and a business borrower.

find out more

Hire Purchase Agreement For Motorcycle

A South African law-governed agreement for the purchase of a motorcycle through installment payments, with ownership retention by the seller until full payment.

find out more

Hire Purchase Agreement Motor Vehicle

A South African law-compliant Hire Purchase Agreement for motor vehicles, governing installment-based vehicle purchases with retention of ownership until final payment.

find out more

Business Investment Loan Agreement

A South African law-governed agreement establishing terms and conditions for a business investment loan, including loan amount, interest rates, repayment terms, and security arrangements.

find out more

Auto Loan Promissory Note

A South African law-governed promissory note documenting a vehicle loan agreement with associated security and payment terms under the National Credit Act.

find out more

Facility Agreement Loan

A South African law-governed agreement establishing terms and conditions for a loan facility, including amount, interest, repayment terms, and security arrangements.

find out more

Computer Equipment Loan Agreement

A South African law-governed agreement for the temporary loan of computer equipment, establishing terms, conditions, and responsibilities between lender and borrower.

find out more

Sellers Finance Agreement

A South African legal agreement where the seller provides direct financing to the purchaser, combining sale and credit terms in compliance with local credit legislation.

find out more

Master Securities Loan Agreement

A South African law-governed agreement establishing terms for securities lending transactions between financial institutions, including collateral, margin, and regulatory requirements.

find out more

Hand Loan Agreement

A South African legal document formalizing a loan agreement between parties, typically for private lending, outlining loan terms and conditions in accordance with local law.

find out more

Co Financing Agreement

A South African law-governed agreement establishing terms and conditions for multiple lenders to jointly provide financing, including rights, obligations, and security arrangements.

find out more

Litigation Funding Agreement

A South African law-governed agreement establishing terms for third-party funding of legal proceedings, including funding commitments, success fees, and risk allocation.

find out more

Owner Finance Vehicle Contract

A South African law-governed agreement combining vehicle sale and owner-provided financing terms, compliant with National Credit Act requirements.

find out more

Loan Facilitation Agreement

A South African law-governed agreement establishing terms between loan facilitators and lenders for loan origination and management services.

find out more

Royalty Financing Agreement

A South African law-governed agreement establishing terms for royalty-based financing, including payment terms, calculations, and regulatory compliance requirements.

find out more

Loan Participation Agreement

A South African law-governed agreement establishing terms for a participant's acquisition of an interest in a loan facility, including risk-sharing and administrative arrangements.

find out more

Overfacility Agreement

A South African law-governed agreement establishing terms for additional credit facilities provided by a financial institution to a borrower beyond existing arrangements.

find out more

Loan And Mortgage Agreement

A South African law-governed agreement establishing terms for a property-secured loan, combining lending provisions with mortgage security arrangements.

find out more

Hire Purchase Agreement For Car

A South African law-governed agreement for the purchase of a vehicle through installment payments, with the seller retaining ownership until full payment is made.

find out more

Film Financing Agreement

A South African law-governed agreement establishing terms and conditions for film production financing, including funding structure, security arrangements, and regulatory compliance requirements.

find out more

Vehicle Payment Plan Agreement

A South African law-compliant agreement governing the purchase of a vehicle through scheduled payments, detailing financial terms and ownership conditions.

find out more

Vehicle Finance Contract

A South African law-compliant agreement for vehicle financing between a credit provider and customer, outlining terms of credit, vehicle details, and security arrangements.

find out more

Undertaking Loan Agreement

South African-compliant loan agreement establishing terms for lending money, including repayment conditions and borrower undertakings.

find out more

Trade Finance Facility Agreement

A South African law-governed agreement establishing terms for trade finance facilities between a financial institution and corporate borrower, including facility structure, utilization, and compliance requirements.

find out more

Seller Financing Real Estate Contract

A South African law-compliant agreement for property sale with seller-provided financing, combining real estate transfer and credit provision terms.

find out more

Master Loan Agreement

A South African law-governed framework agreement establishing terms and conditions for ongoing lending arrangements between a financial institution and borrower.

find out more

Margin Loan Agreement

A South African law-governed agreement establishing terms for lending against securities as collateral, with provisions for margin maintenance and regulatory compliance.

find out more

Installment Loan Agreement

A South African law-governed agreement setting out terms for a loan repayable in installments, compliant with the National Credit Act.

find out more

Financial Support Agreement

A South African law-governed agreement establishing terms for financial support between parties, including payment terms, obligations, and compliance requirements.

find out more

Financial Assistance Agreement

South African law-governed agreement establishing terms for providing financial assistance, compliant with the National Credit Act and financial sector regulations.

find out more

Car Installment Agreement

A South African law-compliant agreement for vehicle purchase through installment payments, detailing financial terms, obligations, and ownership conditions.

find out more

Bridge Financing Agreement

South African law-governed agreement for temporary financing arrangements, typically used as interim funding until permanent financing is secured.

find out more

Auto Finance Contract

South African vehicle financing agreement that establishes terms for vehicle purchase financing under National Credit Act requirements.

find out more

Municipal Lease Purchase Agreement

A South African law-governed agreement enabling municipalities to acquire assets through lease-to-own arrangements while ensuring compliance with municipal finance regulations.

find out more

Vehicle Finance Agreement

A South African law-governed agreement setting out terms for vehicle financing, compliant with the National Credit Act and Consumer Protection Act.

find out more

Loan Payoff Agreement

A South African law-governed agreement that documents the terms and conditions for settling and terminating an existing loan, ensuring compliance with local credit legislation.

find out more

Mortgage Bond Agreement

A South African law-governed security agreement creating a mortgage bond over immovable property to secure a loan or other obligation.

find out more

Master Asset Finance Agreement

A South African law-governed master agreement establishing terms for multiple asset financing transactions between a finance provider and customer.

find out more

Development Credit Agreement

A South African law-governed agreement for providing credit facilities for development projects, incorporating local regulatory requirements and development objectives.

find out more

Small Credit Agreement

A South African law-governed credit agreement for small loans, compliant with the National Credit Act, documenting terms between a credit provider and consumer.

find out more
See more related templates

Genie’s Security Promise

Genie is the safest place to draft. Here’s how we prioritise your privacy and security.

Your documents are private:

We do not train on your data; Genie’s AI improves independently

All data stored on Genie is private to your organisation

Your documents are protected:

Your documents are protected by ultra-secure 256-bit encryption

We are ISO27001 certified, so your data is secure

Organizational security:

You retain IP ownership of your documents and their information

You have full control over your data and who gets to see it

2 Docs LeftAccess Now