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Revenue Loan Agreement for Philippines

Revenue Loan Agreement Template for Philippines

A Revenue Loan Agreement under Philippine law is a specialized financing instrument where the borrower's repayment obligations are tied to their future revenue performance. This agreement, governed by Philippine commercial and banking regulations, establishes the terms for a loan where repayments fluctuate based on the borrower's revenue, typically calculated as a percentage of monthly or quarterly revenue. The document outlines the revenue calculation methodology, reporting requirements, payment mechanisms, and compliance with Philippine lending laws, including the Lending Company Regulation Act and relevant Central Bank regulations. It includes specific provisions for revenue verification, audit rights, and default scenarios unique to revenue-based financing structures.

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What is a Revenue Loan Agreement?

The Revenue Loan Agreement serves as a flexible financing solution for businesses seeking alternative funding sources in the Philippines. This document is particularly suitable for companies with steady revenue streams but who may not qualify for or desire traditional fixed-payment loans. The agreement comprehensively details the revenue-sharing mechanism, including the percentage of revenue to be shared, payment frequency, and calculation methods. It ensures compliance with Philippine banking and lending regulations while protecting both lender and borrower interests. The document includes essential provisions required under Philippine law, such as truth in lending disclosures, documentary stamp tax considerations, and electronic commerce compliance where applicable. This type of agreement has gained popularity among growth-stage companies and SMEs looking for more flexible financing options aligned with their business performance.

What sections should be included in a Revenue Loan Agreement?

1. Parties: Identification of the Lender and Borrower with complete legal names and addresses

2. Background: Context of the agreement, including the purpose of the loan and brief description of the Borrower's business

3. Definitions: Definitions of key terms used throughout the agreement, including 'Revenue', 'Payment Period', 'Relevant Revenue', and other technical terms

4. The Loan: Details of the loan amount, disbursement conditions, and purpose

5. Revenue Share Calculation: Formula and methodology for calculating the revenue share payments, including the percentage of revenue to be shared

6. Payment Terms: Payment schedule, calculation periods, payment methods, and currency

7. Borrower's Revenue Reporting Obligations: Requirements for revenue reporting, frequency, format, and supporting documentation

8. Representations and Warranties: Standard and specific representations and warranties from both parties

9. Covenants: Positive and negative covenants, including business operation requirements and restrictions

10. Events of Default: Circumstances constituting default and consequences thereof

11. Audit Rights: Lender's rights to audit the Borrower's books and records

12. Confidentiality: Obligations regarding confidential information

13. Governing Law and Jurisdiction: Specification of Philippine law as governing law and jurisdiction for disputes

14. Miscellaneous: Standard boilerplate provisions including notices, amendments, assignments, and severability

What sections are optional to include in a Revenue Loan Agreement?

1. Security: Include when the loan is secured by specific assets or guarantees

2. Minimum Payment Provisions: Include when there's a minimum payment requirement regardless of revenue

3. Maximum Payment Cap: Include when there's a cap on the total repayment amount

4. Early Repayment: Include when early repayment options are available

5. Insurance Requirements: Include when specific insurance coverage is required

6. Intellectual Property Rights: Include when IP rights are relevant to the revenue generation

7. Change of Control: Include when restrictions on change of ownership are necessary

8. Electronic Execution: Include when agreement may be executed electronically

What schedules should be included in a Revenue Loan Agreement?

1. Schedule 1 - Revenue Calculation Methodology: Detailed explanation of how revenue is calculated, including inclusions and exclusions

2. Schedule 2 - Form of Revenue Report: Template for periodic revenue reporting

3. Schedule 3 - Conditions Precedent: List of conditions to be satisfied before loan disbursement

4. Schedule 4 - Payment Examples: Examples illustrating how revenue share payments are calculated

5. Schedule 5 - Permitted Investments: List of approved investment activities for the Borrower

6. Appendix A - Initial Business Plan: Borrower's business plan and revenue projections

7. Appendix B - Bank Account Details: Payment account information for both parties

8. Appendix C - Compliance Certificates: Templates for required compliance certificates

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Philippines

Publisher

Genie AI

Document Type

Finance Agreement

Cost

Free to use
Relevant legal definitions













































Clauses

































Relevant Industries

Technology and Software

E-commerce

Retail and Consumer Goods

Food and Beverage

Healthcare Services

Digital Services

Manufacturing

Professional Services

Media and Entertainment

Education and Training

Telecommunications

Financial Services

Hospitality and Tourism

Relevant Teams

Legal

Finance

Treasury

Compliance

Risk Management

Corporate Secretariat

Credit

Business Development

Operations

Investment

Accounting

Relevant Roles

Chief Financial Officer

Finance Director

Legal Counsel

Corporate Secretary

Treasury Manager

Financial Controller

Compliance Officer

Risk Manager

Business Development Director

Chief Executive Officer

Chief Operating Officer

Investment Manager

Loan Officer

Credit Risk Analyst

Financial Analyst

Corporate Lawyer

Accounting Manager

Industries








Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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