Document background
The Term Loan Agreement is a fundamental financing document used in Australian commercial lending transactions where a lender provides a fixed-term loan to a borrower. It is particularly useful for businesses seeking medium to long-term financing for specific purposes such as capital expenditure, acquisitions, or general corporate purposes. The agreement must comply with Australian banking regulations, consumer protection laws (where applicable), and security registration requirements. It typically contains detailed provisions on loan mechanics, security arrangements, covenants, and enforcement rights, tailored to the Australian legal framework. This document is essential for both bilateral and syndicated lending arrangements and can be adapted for various sectors and borrower types, from small businesses to large corporations.
