Financial Support Document
A Finance Support document defines a relationship between two parties where one provides financial support to the other concerned party, where the party seeking support is considered as the financed company whereas the party providing help is the financer. The main purpose of the document is to provide help to the borrower company for promoting, expanding and maintaining its business operations by providing with funds as and when required. This gives a mental support to the borrower company that whenever they require funds they have a secured and sure help available. The funds provided by the financer are to be repaid along with the agreed interests.
Sample Financial Support Document
Name of the borrower: Veto Plc
Address of the borrower: House number 54, Salt Street, Hudson Lane, UK.
Agreement prepared by: Mr. John Jackson, Financial Consultant
Date of drafting of financial support document: June 21, 2012
Name of the Finance company: Globe Finance
Agreement approved by: Mr. Hatton, Senior Manager
Date of approval of finance support document: June 25, 2012
Significant features of Financial Support Document
- The borrowing enterprise, henceforth known as the finance company, is indebted to the lender, henceforth known as the Financer in the amount financed over a period of two years till June 24, 2014 with rate of interest of 7.5% p.a. payable.
- The financer has all rights to into the activities of the finance department of the financed firm and to give suggestions for the enhancement and progress of the company.
- The main purpose behind the formation of this document is to have the funds readily available when ever needed by the financed company.
- The document has been signed after a deep scrutiny of the financed company in terms of credit worthiness.
- The document can be called by any of the party by giving a prior notice of 2 months.
Posted in Financial Documents