Document background
A Future Advance Promissory Note is commonly used in situations where funding requirements are staged or uncertain. This document, governed by English and Welsh law, provides flexibility for borrowers who need access to funds over time while giving lenders security and clear terms for the advancing of funds. It's particularly useful in construction projects, business expansion, or any scenario where capital needs are progressive rather than immediate. The note typically includes maximum facility amount, interest rates, draw-down conditions, repayment terms, and any security arrangements.
