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The Business Finance Agreement serves as the primary legal document for establishing financing arrangements between financial institutions and businesses in Malaysia. It is used when businesses seek funding for various purposes such as working capital, expansion, asset acquisition, or project financing. The agreement must comply with Malaysian banking regulations, including both conventional and Islamic banking requirements under the Financial Services Act 2013 and Islamic Financial Services Act 2013. It includes comprehensive details about facility terms, security arrangements, covenants, and obligations of all parties involved. The document is structured to accommodate Malaysia's dual banking system, allowing for both conventional and Shariah-compliant financing options while ensuring enforceability under Malaysian law.

1. Parties: Identification of the finance provider and the business recipient, including registration numbers and registered addresses

2. Background: Context of the financing arrangement, purpose of the facility, and brief description of the business relationship

3. Definitions and Interpretation: Definitions of key terms used throughout the agreement and rules of interpretation

4. Facility Details: Specific details of the financing facility including amount, purpose, and type of facility

5. Conditions Precedent: Conditions that must be satisfied before the facility becomes available

6. Drawdown Provisions: Terms and procedures for accessing the facility funds

7. Interest/Profit Rate and Payments: Specification of interest/profit rates, calculation methods, and payment terms

8. Representations and Warranties: Standard declarations made by the business about its legal status and capacity

9. Covenants: Ongoing obligations of the business during the facility period

10. Events of Default: Circumstances that constitute default and their consequences

11. Security: Overview of security arrangements and enforcement rights

12. Termination: Conditions and procedures for terminating the facility

13. General Provisions: Standard clauses including notices, amendments, governing law, and jurisdiction