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Trade Credit Agreement Template for Philippines

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Key Requirements PROMPT example:

Trade Credit Agreement

"I need a Trade Credit Agreement for a PHP 5 million facility to a manufacturing company, including provisions for equipment collateral and personal guarantees from company directors, to be effective from March 2025."

Document background
The Trade Credit Agreement is a crucial document used in Philippine business transactions where suppliers or financial institutions extend credit to business customers for trade purposes. It is particularly relevant in situations where regular business transactions require deferred payment terms or ongoing credit facilities. The agreement must comply with Philippine legal requirements, including the Civil Code, Commercial Code, and relevant Central Bank regulations. It typically includes detailed provisions on credit limits, payment terms, security arrangements, events of default, and remedies. This document is essential for businesses seeking to establish formal credit relationships with their trading partners while ensuring legal protection and regulatory compliance in the Philippine jurisdiction. The agreement's structure accommodates various security arrangements and can be customized based on the specific needs of the trading relationship and industry requirements.
Suggested Sections

1. Parties: Identification of the credit provider and the customer, including complete legal names, registration details, and addresses

2. Background: Context of the trade relationship and purpose of the credit arrangement

3. Definitions: Definitions of key terms used throughout the agreement

4. Credit Facility: Details of the credit facility, including credit limit, nature of facility, and purpose

5. Terms of Credit: Credit period, payment terms, and invoicing requirements

6. Interest and Charges: Interest rates, late payment charges, and other applicable fees

7. Security Arrangements: Details of any security or guarantee required for the credit facility

8. Conditions Precedent: Conditions that must be satisfied before credit is extended

9. Representations and Warranties: Standard representations and warranties from the customer

10. Covenants: Positive and negative covenants binding on the customer

11. Events of Default: Circumstances constituting default and consequences

12. Termination: Conditions and process for terminating the agreement

13. Governing Law and Jurisdiction: Specification of Philippine law as governing law and jurisdiction for disputes

Optional Sections

1. Insurance Requirements: Required when specific insurance coverage is needed for the credited goods or business

2. Credit Monitoring: Include when regular financial reporting and monitoring are required

3. Cross-Default Provisions: Include when the customer has multiple facilities or agreements

4. Currency Provisions: Required for international trade credit arrangements

5. Electronic Communications: Include when parties agree to use electronic means for notifications and documents

6. Force Majeure: Include when specific force majeure provisions are needed beyond standard provisions

7. Assignment and Transfer: Include when either party may need to transfer rights or obligations

8. Data Protection: Include when personal data processing is involved in the credit arrangement

Suggested Schedules

1. Schedule 1 - Credit Limit and Pricing Details: Detailed breakdown of credit limits, pricing, and fee structure

2. Schedule 2 - Security Details: Detailed description of security arrangements, including any guarantees or collateral

3. Schedule 3 - Form of Drawdown Request: Standard form for requesting credit under the facility

4. Schedule 4 - Conditions Precedent Documents: List of required documents to be provided before facility activation

5. Schedule 5 - Reporting Requirements: Templates and timing for required financial and operational reports

6. Appendix A - Standard Terms and Conditions: Detailed terms and conditions referenced in the main agreement

7. Appendix B - Compliance Certificates: Template certificates for ongoing compliance confirmation

Authors

Alex Denne

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

Relevant legal definitions






































Clauses




























Relevant Industries

Retail

Manufacturing

Wholesale Trade

Distribution

Import/Export

Construction

Agriculture

Consumer Goods

Industrial Products

Technology

Telecommunications

Healthcare

Automotive

Energy

Mining

Relevant Teams

Legal

Finance

Treasury

Credit Control

Commercial Operations

Risk Management

Compliance

Account Management

Business Development

Operations

Relevant Roles

Chief Financial Officer

Finance Director

Credit Manager

Commercial Director

Treasury Manager

Legal Counsel

Compliance Officer

Risk Manager

Financial Controller

Account Manager

Business Development Manager

Credit Analyst

Contract Manager

Corporate Secretary

Operations Manager

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, 聽Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination, 聽Severance Pay, Governing Law, Entire Agreemen

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