Document background
The Revolving Credit Facility Agreement is a crucial financing document used when businesses require flexible access to credit for working capital, operational expenses, or general corporate purposes. This agreement type is particularly valuable in the Malaysian business context, where companies often need adaptable financing solutions that allow them to manage cash flow efficiently. The document must comply with Malaysian banking and financial services regulations, including the Financial Services Act 2013 and Bank Negara Malaysia guidelines. It typically includes comprehensive provisions covering facility terms, security arrangements, conditions precedent, representations and warranties, and covenants. The revolving nature of the facility allows borrowers to draw down and repay funds multiple times within the facility limit, providing greater flexibility compared to traditional term loans. The agreement is commonly used by both Malaysian companies and multinational corporations operating in Malaysia, and can be structured to accommodate both conventional and Islamic banking requirements.
