Business Line of Credit Agreement Template (Word & PDF)

Complete business line of credit agreement document with detailed terms and sample formatting

Download now – Fully editable and ready to use.

What’s included

A clean, professional template in both Microsoft Word (.docx) and PDF formats.
Pre-filled headings and structured sections covering Purpose, Credit Limit, Interest & Payment Terms, Security, Default, Term & Renewal, and more.
Clear placeholders (e.g., “[Borrower’s Legal Name]”, “[Credit Limit Amount]”) so you can quickly personalise the agreement to your business.
Guidance comments (hidden or marginal) to help you understand and adapt key clauses for your situation.
A brief user-guide / checklist at the end, helping you ensure all blanks are filled and key decisions made before signing.

Why you need this template

Running a business means managing cash flow, and a line of credit is a flexible tool that lets you draw funds when needed rather than borrowing a fixed sum upfront. However, having a well-drafted agreement is essential to:

Clearly define the maximum amount you can draw (the “Credit Limit”) and how advances will work.
Establish how interest will be calculated, when payments must be made, and whether pre-payments or early repayments are allowed.
Protect both parties by outlining representations, warranties, collateral (if any), and what constitutes a default.
Provide clarity around the term of the agreement, renewal rights, and when either party may terminate.
Reduce risk of misunderstandings and disputes by setting out all the key obligations and rights in writing.

How to use

Download the .docx or .pdf file.
Fill in the blanks: lender & borrower details, credit limit, interest rate, term, fees, collateral (if any).
Review (ideally with your legal or financial advisor) to ensure it matches your specific jurisdiction & business requirements.
Once customised, print and sign (or sign electronically if your system allows).
Keep a signed copy for both parties, and track advances, outstanding balance, and key dates under the agreement.

Please note

This template is provided for general business use only. It is not legal advice. You should review your local laws, regulatory requirements and your business’s individual circumstances—and consult with a qualified attorney or advisor if necessary—before relying on any agreement document.