"Revolving Credit Agreement Template"

What Is a Revolving Credit Agreement?

A Revolving Credit Agreement is a contract between a seller and a buyer who agree to create a revolving credit account. According to a Revolving Credit Agreement, a seller allows a buyer to make purchases under this account on the terms and conditions established in the agreement. The loan amount on this account can be refunded or withdrawn any number of times.

Alternate Names:

  • Revolving Line of Credit Agreement;
  • Revolving Credit Facility Agreement.

A buyer has to repay a revolving loan, including the financial charges, applied to the unpaid balance, and delinquent charges in the case of late payment. The usage of revolving credit lines provides liquidity for the buyer's daily transactions. Examples of revolving credit are credit card loans and overdrafts.

A Revolving Credit Agreement template can be downloaded below or you can make your own using our online form builder.

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How to Write a Revolving Credit Agreement?

A Revolving Credit Facility Agreement usually contains the following:

  1. Introduction. Enter the date of the agreement. Specify the legal names and addresses of the parties: the seller and the buyer.
  2. Establishment of the Account. The parties have to arrange the creation of a revolving credit account.
  3. Maximum Credit. Indicate the limit of the unpaid balance, which it is not allowed to exceed.
  4. Periodic Statement. The seller is obliged to present the buyer with a statement that contains the total unpaid balance at the beginning and end of the reporting period, a list of the buyer's purchases, including prices and dates, and the total finance charge amount of the buyer. A periodic statement should be provided by the seller each calendar month.
  5. Calculation of Finance Charge. Enter the rate of the finance charge, which will be applied to the unpaid balance at the beginning of the statement period. Indicate that the finance charge is applied every month.
  6. Payment and Delinquent Charges. The buyer must express their consent to pay the minimum amount, stated in the monthly statement, by a particular date. Set the acceptable payment delay conditions, including the number of days of delay and a delinquent charge amount that will be imposed on the buyer at the end of this period.
  7. Prepayment. State the ability of the buyer to pay fully or partially the unpaid balance at any time. Indicate that the seller is not allowed to apply any prepayment charge regarding these payments.
  8. Cancellation. State that the seller and the buyer have a right to cancel this agreement at any time. For this purpose, they should provide a written notice to the other party. Indicate that giving this notice does not release the parties from their responsibilities to repay any unpaid balance and to collect the debt correspondingly.

Specify the applicable laws that govern this Revolving Credit Agreement. The seller and the buyer have to sign the agreement and enter the date of its completion.


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Revolving Credit Agreement
This ​ R evolving Credit Agreement (hereinafter referred to as the “Agreement”) is
entered into as of _________________ by and between ______________________, with
a mailing address of _______________________________________________________
______________ (hereinafter referred to as the “Seller”) and ______________________,
with a mailing address of ___________________________________________________
____________________ (hereinafter referred to as the “Buyer”), collectively referred to
as the “Parties,” both of whom agree to be bound by this Agreement.
1. Account Establishment. ​ U nder the terms and conditions set forth in this Agreement,
the Buyer and Seller agree to the establishment of a revolving credit account (hereinafter
referred to as the “Account”) under which the Seller agrees to permit the Buyer to make
purchases from time to time and to debit the Buyer's Account for the cash price of each
purchase and any related finance charges as provided for in this Agreement.
The Buyer agrees to make payments on the unpaid principal balance in the Account
periodically as provided for in this Agreement and agrees that all purchases made under
this Agreement will be made on the terms and conditions set forth in this Agreement and
in any documents that evidence the purchases made under this Agreement that is
incorporated by reference into this Agreement.
2. Maximum Amount. The unpaid principal balance in the Account may not exceed
$________________ at any one time.
3. Periodic Statement. ​ T he Seller will provide the Buyer with a statement at the
beginning of each calendar month in which there is any unpaid balance under this
Agreement. The statement will include the unpaid balance at the beginning and end of the
period; an identification of the goods purchased during the period, the cash purchase
price, and the date of each purchase; any payments made by the Buyer or other credits to
the Buyer during the period; and the amount of any finance charge.
4. Calculation of Finance Charge​ . A finance charge will be imposed at a rate of
________________% per month. In calculating the amount of the finance charge, the rate
will be applied to the unpaid balance at the beginning of the period. The balance to which
the rate will be applied includes any arrearages or finance charges. For purposes of
computing the finance charge, a month runs from one date in a month to the
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Revolving Credit Agreement
This ​ R evolving Credit Agreement (hereinafter referred to as the “Agreement”) is
entered into as of _________________ by and between ______________________, with
a mailing address of _______________________________________________________
______________ (hereinafter referred to as the “Seller”) and ______________________,
with a mailing address of ___________________________________________________
____________________ (hereinafter referred to as the “Buyer”), collectively referred to
as the “Parties,” both of whom agree to be bound by this Agreement.
1. Account Establishment. ​ U nder the terms and conditions set forth in this Agreement,
the Buyer and Seller agree to the establishment of a revolving credit account (hereinafter
referred to as the “Account”) under which the Seller agrees to permit the Buyer to make
purchases from time to time and to debit the Buyer's Account for the cash price of each
purchase and any related finance charges as provided for in this Agreement.
The Buyer agrees to make payments on the unpaid principal balance in the Account
periodically as provided for in this Agreement and agrees that all purchases made under
this Agreement will be made on the terms and conditions set forth in this Agreement and
in any documents that evidence the purchases made under this Agreement that is
incorporated by reference into this Agreement.
2. Maximum Amount. The unpaid principal balance in the Account may not exceed
$________________ at any one time.
3. Periodic Statement. ​ T he Seller will provide the Buyer with a statement at the
beginning of each calendar month in which there is any unpaid balance under this
Agreement. The statement will include the unpaid balance at the beginning and end of the
period; an identification of the goods purchased during the period, the cash purchase
price, and the date of each purchase; any payments made by the Buyer or other credits to
the Buyer during the period; and the amount of any finance charge.
4. Calculation of Finance Charge​ . A finance charge will be imposed at a rate of
________________% per month. In calculating the amount of the finance charge, the rate
will be applied to the unpaid balance at the beginning of the period. The balance to which
the rate will be applied includes any arrearages or finance charges. For purposes of
computing the finance charge, a month runs from one date in a month to the
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corresponding date in the following month, or, if there is no corresponding date, then to
the last day of the following month.
If the finance charge as computed is less than $________________ for any monthly
period, a monetary charge of $________________ for the month will be imposed.
5. Payment and Delinquent Charges. The Buyer agrees to pay an amount equal to the
minimum payment as stated in the periodic statement by the due date provided in the
periodic statement. If any payment is late by _________________ or more, a delinquent
charge in the amount of $________________ will be imposed. In no event will the
delinquent charge for any one installment exceed $________________.
6. Prepayment. ​ T he Buyer may pay any part or all of the unpaid balance on the Account
at any time. No prepayment charge will be imposed for any prepayment.
7. Cancellation. ​ T his Agreement may be canceled at any time by either party giving
written notice of cancellation to the other. Notice of cancellation will not affect either the
buyer's obligation to repay any outstanding indebtedness to the Seller or the Seller's right
to collect the indebtedness.
8. Governing Law. ​ T he Parties agree that this Agreement shall be governed by the laws
of ______________________.
S tate
The Parties agree to the terms and conditions set forth above as demonstrated by their
signatures as follows:
BUYER
SELLER
Name: _____________________
Name: _____________________
Signed: ____________________
Signed: ____________________
Date: ______________________
Date: ______________________
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