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Loan Facility Letter


This template is an alternative to our Short Form Loan Agreement. It is in the form of a letter sent from the lender to the borrower, setting out the terms on which the lender will make available a loan to the borrower.

The letter includes all the standard clauses you would expect to find in a short form loan agreement and is based on our basic loan agreement template.

The borrower, upon agreeing to the terms and confirming their acceptance will sign and return a form of acceptance to the lender, this is attached to the back of the template.

The principal terms of the loan are set out in the letter and include:

  • Details of the Loan Facility;
  • Purpose;
  • Interest and Default Interest;
  • Repayment;
  • Representations and Warranties;
  • Default;
  • Miscellaneous provisions;
  • Governing Law and Jurisdiction; and
  • Form of Acceptance.

It is suitable for use whether the lender or borrower is a business or an individual.

Should the lending relationship you seek to achieve require more detail or protection, you may wish to download and use our alternative Long Form Loan Agreement.

NOTE: This agreement is not intended to be regulated by the Consumer Credit Act 1974 which requires that businesses that lend money to consumers must be licensed to do so by the OFT. This agreement is not intended for consumer purposes; trading without a licence is a criminal offence and can result in a fine and/or imprisonment.

Optional phrases/clauses are enclosed in square brackets. These should be read carefully and selected so that they are compatible with one another. Unused options should be removed from the document.

This document is in open format. Either enter the requisite details in the highlighted fields or adjust the wording to suit your purposes.

Once you have purchased access to the appropriate document folder click on the “Download Document” link below. You will be asked what you want to do with the file. It is recommended that you save the document to a location of your choice prior to viewing.

Loan Facility Letter is part of Corporate Documents. Just £35.00 + VAT provides unlimited downloads from Corporate Documents for 1 year.

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