Lending agreement

Lending Agreement
Financial & Investment Dictionary:
Lending Agreement
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lending agreement
contract between a lender and a borrower.
See also indenture , term loan , revolving credit ...

Lending agreement
A contract regarding funds transferred between a lender and a borrower.
Lessee ...

A lending agreement, often long term, between a borrowing company and a lending institution whereby the borrower assigns specific customer accounts that owe money (accounts receivable) to the lending institution.

Many lending agreements also contain restrictive covenants that limit capital spending to formulae-the right spending level is a function of what happened in the past adjusted by management's or investors' wishes.

The preceding discussion about unique interest calculations sheds light on the mechanics that lenders can use to tilt the benefit of a lending agreement to their advantage.

Legal action of debtor against creditors that alleges unfair enforcement of loan covenants or violation of implied terms of a loan agreement.
Lending agreement ...

Conditions Precedent (CPs): A set of preconditions that must be satisfied before the borrower can request drawdown or other credit facilities be made available under a lending agreement.

See also: Indenture, Expense, Recourse, Capital structure, Line of credit