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A Financing Agreement spells out how lenders will provide funds to borrowers, typically for major business investments or projects in Switzerland. It sets the core terms like interest rates, payment schedules, and what happens if someone can't pay. Swiss banks and financial institutions use these agreements extensively, following strict guidelines from FINMA (the Swiss Financial Market Supervisory Authority).

Beyond just laying out the money details, these agreements protect both sides under Swiss law. They include important safeguards like collateral requirements, reporting duties, and specific conditions that must be met before funds are released. For cross-border deals, they often need to align with both Swiss banking regulations and international financing standards.

Use a Financing Agreement when your business needs substantial funding for growth, acquisitions, or major projects in Switzerland. This becomes essential for loans above CHF 100,000, real estate investments, or when seeking capital from multiple Swiss banks or investors. The agreement protects both parties by clearly defining the terms before any money changes hands.

It's particularly important to put a Financing Agreement in place during complex transactions like corporate restructuring, international expansion, or equipment financing. Swiss regulations require detailed documentation for significant lending arrangements, especially those involving institutional lenders or cross-border elements. Having this agreement ready early helps avoid delays and ensures compliance with FINMA requirements.

• Seller Financing Agreement: Used when a seller provides direct financing to buyers for asset purchases, common in Swiss real estate and business sales
• Short Loan Agreement: Simplified format for smaller, short-term loans under Swiss law, typically under CHF 50,000
• No Interest Loan Agreement: For interest-free loans between related parties, following Swiss tax and gift regulations
• Funding Term Sheet: Initial outline of key financing terms before drafting the full agreement, popular in startup funding
• Loan For Use Agreement: Specialized agreement for lending assets or equipment rather than money, with specific Swiss liability provisions

• Swiss Banks and Financial Institutions: Act as primary lenders, drafting and enforcing Financing Agreements while ensuring FINMA compliance
• Corporate Borrowers: Companies seeking capital for expansion, acquisitions, or operations, often represented by their CFOs and legal teams
• Legal Counsel: Both in-house and external attorneys who review, negotiate, and customize agreement terms to protect their clients' interests
• Private Investors: High-net-worth individuals or investment groups providing alternative financing outside traditional banking channels
• Regulatory Bodies: FINMA officials who oversee compliance with Swiss banking laws and financial regulations
• Guarantors: Third parties who provide additional security by guaranteeing the borrower's obligations

• Party Details: Gather full legal names, addresses, and registration numbers of all lenders, borrowers, and guarantors
• Loan Specifics: Document exact amount, currency, interest rate, and payment schedule aligned with Swiss banking standards
• Security Details: List all collateral, including property details or asset valuations with proper Swiss documentation
• Regulatory Requirements: Check FINMA guidelines for your specific financing type and amount
• Default Provisions: Define clear consequences and remedies under Swiss law for missed payments
• Custom Elements: Our platform helps generate precise terms matching your needs while ensuring Swiss legal compliance
• Internal Review: Have key stakeholders verify all terms before finalizing

• Party Identification: Full legal names, addresses, and registration details as per Swiss Commercial Registry requirements
• Loan Terms: Precise amount, currency, interest calculation method, and repayment schedule following Swiss banking standards
• Security Provisions: Detailed collateral descriptions and enforcement rights under Swiss debt collection law
• Default Clauses: Specific triggers and remedies aligned with Swiss Code of Obligations
• Governing Law: Clear statement of Swiss law application and canton jurisdiction
• Data Protection: GDPR-compliant privacy terms and Swiss data handling requirements
• Signature Block: Proper format for Swiss legal authentication with witness provisions if needed

A Financing Agreement differs significantly from a Credit Agreement in several key aspects under Swiss law. While both involve lending arrangements, they serve distinct purposes and come with different legal requirements.

• Scope and Purpose: Financing Agreements typically cover larger, more complex funding arrangements like project financing or business expansion, while Credit Agreements focus on revolving credit facilities or specific purchase financing
• Structure: Financing Agreements often involve multiple parties, detailed security arrangements, and complex drawdown conditions. Credit Agreements usually have simpler structures with straightforward credit limits and usage terms
• Regulatory Oversight: Financing Agreements face stricter FINMA scrutiny and reporting requirements, especially for amounts over CHF 1 million. Credit Agreements often fall under standard banking regulations
• Duration and Flexibility: Financing Agreements typically have longer terms with specific milestones, while Credit Agreements offer more flexible, shorter-term borrowing options