Working Capital Facility

How is Working Capital Facility defined in a legal contract?

• Working Capital Facility means the total amount of the commitments of lenders who provide for the needs of day-to-day operations at any given time. Seen in 41 SEC filings
• Working Capital Facility means one or more debt facilities that provide up to a certain sum of money, which cover various types of financing such as revolving credit loans and receivables financing. These facilities can be modified, replaced, or refinanced as necessary. Seen in 19 SEC filings
• Working Capital Facility means a committed or uncommitted revolving credit facility signed by the borrower or a subsidiary for the purpose of obtaining working capital financing in ordinary business operations. Seen in 10 SEC filings
• Working Capital Facility means any type of loan, note, other credit facility or commitment that is allowed under certain conditions, and any extensions, replacements, refinances or renewals of these agreements. Seen in 9 SEC filings
• Working Capital Facility means any revolving loan, as defined in a specific credit agreement, extended to an entity. Seen in 8 SEC filings

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Which definition should you use?

🤔 Our AI Legal Assistant has combined and improved the above descriptions to create market-standard 'Genie definitions' below, with guidance on which documents and which industry to use for each.

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Genie Definition 1

Working Capital Facility means the total of lenders' commitments providing for daily operational needs.

Relevant Contract Type

• Loan Agreement Contract
• Line of Credit Agreement Contract

Relevant Circumstances

• When a company needs to secure financing for day-to-day operations.
• When a company is seeking to establish a relationship with a lender for ongoing funding needs.

Relevant Sectors

• Banking and Finance
• Manufacturing
• Retail

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Genie Definition 2

Working Capital Facility means one or more debt facilities, offering variable financial support such as revolving credit loans and receivables financing, which can be adapted as required.

Relevant Contract Types

• Credit Agreement Contract
• Debt Financing Agreement Contract

Relevant Circumstances

• When a company wants to structure its financing in a flexible way, allowing for changes in the economic environment.
• When a company seeks to diversify its sources of finance.

Relevant Sectors

• Financial Services
• Real Estate

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Genie Definition 3

Working Capital Facility means a committed or uncommitted revolving credit facility, obtained in the ordinary course of business for securing working capital financing.

Relevant Contract Types

• Revolving Credit Agreement Contract

Relevant Circumstances

• When a company needs flexible financing to manage its working capital and cash flow.
• When a company does not have a predictable pattern of borrowing needs.

Relevant Sectors

• Retail
• Hospitality

Genie Definition 4

Working Capital Facility means any loan or credit facility permitted under certain conditions, including extensions, replacements, or refinances of aforementioned agreements.

Relevant Contract Types

• Business Loan Agreement Contract

Relevant Circumstances

• When a company seeks to refinance its debt.
• When a company needs to extend the term of a current loan.

Relevant Sectors

• Manufacturing
• Tech Startups

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