Revolving credit agreement examples

Other Names: Revolving Line of Credit Agreement Line of Credit Agreement

What is a Revolving Credit Agreement?

A Revolving Credit Agreement is a contract between a lender and a trusted borrower, providing the latter with a revolving line of credit. Revolving Credit Agreements give the borrower access to a fixed amount of credit they can use over a period of time – once it’s spent, it must be paid before additional charges are applied. Revolving Credit Agreements are beneficial for both parties involved, as borrowers do not have to pay for a lump sum loan every time they want to use credit, and lenders may gain a long-lasting and high-paying customer. A Revolving Credit Agreement is pretty simple, and is often just between an individual seller or store and a customer. Whether you’re looking to sell items on an extended timeline to trustworthy buyers or you’re looking to purchase goods on credit, a revolving credit line can help make business a little easier for both buyers and sellers. Rocket Lawyer can help you set out the terms with our Revolving Credit Agreement template, so you can get started right away!

When to use a Revolving Credit Agreement:

• You are a seller and willing to lend money to a buyer (a line of credit) to purchase goods from your business.
• You would like to negotiate the purchase of goods under a revolving line of credit.

Sample Revolving Credit Agreement

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