Can this agreement be signed electronically?

Yes. Electronic signatures are legally enforceable under the ESIGN Act (15 U.S.C. ch. 96) and UETA in most U.S. jurisdictions when intent, consent, attribution, and retention requirements are met.

Do I need a notary or witness?

Notarization is required if a state or specific collateral filing demands it; some states require witnesses for certain real estate transfers. Confirm with state recording and notary rules.

What happens if a party signs with a different legal name?

A mismatched signatory name can jeopardize enforceability and complicate UCC searches; attach corporate resolutions or an affidavit of authority to clarify signer capacity.

Is a UCC-1 financing statement necessary?

If the lender takes a security interest in personal property or receivables, file a UCC-1 in the appropriate state to perfect priority rights against third parties.

How long should originals be retained?

Keep originals for the agreement term plus at least three years; longer retention may be required for tax, HIPAA, or SEC-regulated records per federal and state rules.

What identification is recommended for online notarization?

RON providers typically require credential analysis and multi-factor authentication, and they retain an audio-video recording per state RON rules; confirm identity proofing requirements with the chosen notary service.

Electronic Signature
Templates
Finance
Financial Fuel Agreement

Financial Fuel Agreement

This template is fully customizable. Edit the text, fill out the fields, and send it for signature. Give it a try!

FINANCIAL FUEL AGREEMENT

This Financial Fuel Agreement ("Agreement") is entered into as of between the Lender and the Borrower identified below.

PARTIES

Lender Name Lender Address Borrower Name Borrower Address

Entity type: Corporation LLC Individual

Primary Contact — Lender Primary Contact — Borrower

RECITALS

WHEREAS, Lender is willing to make available to Borrower a revolving credit facility (the "Facility") on the terms and subject to the conditions set forth in this Agreement; and

WHEREAS, Borrower desires to obtain the Facility for working capital and operational liquidity purposes consistent with the Purpose defined below.

DEFINITIONS

Capitalized terms used in this Agreement have the meanings set forth herein. "Facility Amount" means the maximum principal available to Borrower under this Agreement.

FACILITY TERMS

Facility Amount: $ (principal amount available to be drawn).

Purpose: .

Interest Rate: per annum, calculated on the outstanding principal balance, payable in arrears. Interest shall be computed on a 365-day year or as otherwise required by applicable law.

Interest Calculation: Compounded daily monthly simple (no compounding)

Facility Term Commencement Date: . Maturity Date: .

DISBURSEMENT AND AVAILABILITY

Disbursement Instructions: Funds shall be disbursed by wire transfer to the account designated by Borrower. Account details:

Receiving Bank Account

Availability Conditions: Each disbursement is subject to Lender's receipt of any required notices, certifications, and any other conditions precedent specified herein.

REPAYMENT SCHEDULE

Borrower shall repay principal and accrued interest in accordance with the schedule below. Borrower may prepay in whole or part subject to prepayment terms below.

Installment	Due Date	Amount (USD)
1
2
3
4

Aggregate Scheduled Payments Total: $

Late Payment: Borrower shall pay a late fee equal to the lesser of $ or of the overdue amount. Interest on overdue principal accrues at per month above the stated interest rate, to the extent permitted by law.

PREPAYMENT AND FEES

Prepayment: Borrower may prepay the Facility, in whole or in part, without premium or penalty except for accrued interest and any reasonable costs expressly set forth herein. Any prepayment shall be applied first to accrued interest, then to principal.

Upfront Fee: $ payable on initial funding.

SECURITY AND COLLATERAL

Description of Collateral

Borrower grants Lender a security interest in the Collateral described above to secure all Obligations under this Agreement. Borrower shall execute and deliver financing statements and other documents necessary to perfect and maintain Lender's security interest.

REPRESENTATIONS, WARRANTIES AND COVENANTS

Borrower represents and warrants that: (a) it is duly organized and validly existing; (b) execution and performance of this Agreement are within its powers and have been authorized; (c) no material litigation or insolvency proceedings are pending; and (d) all information delivered to Lender is true, complete and not misleading in any material respect. Borrower covenants to maintain accurate financial records and provide periodic financial statements as reasonably requested by Lender.

EVENTS OF DEFAULT AND REMEDIES

Events of Default include, without limitation: (a) failure to pay principal or interest when due; (b) breach of any material covenant or representation; (c) insolvency, bankruptcy, or appointment of a receiver for Borrower; (d) material adverse change in Borrower's business. Upon Event of Default, Lender may, at its option, accelerate all amounts due, terminate availability, exercise rights and remedies under applicable security documents and seek any other relief available at law or in equity.

TAXES, COSTS AND INDEMNITY

Borrower shall pay all reasonable costs and expenses incurred by Lender in connection with enforcement of this Agreement, including reasonable attorneys' fees. Borrower shall indemnify and hold Lender harmless from any losses or liabilities (other than those resulting from Lender's gross negligence or willful misconduct).

NOTICES

Notice Address — Lender Notice Address — Borrower

GOVERNING LAW; MISCELLANEOUS

This Agreement shall be governed by the laws of the state of without regard to conflict of laws principles. This Agreement may be amended only by a written instrument signed by both parties. If any provision is held invalid, the remainder shall remain in effect.

Counterparts: This Agreement may be executed in counterparts, each of which shall be an original and all of which together shall constitute one instrument. Signatures transmitted by electronic means shall be effective as originals.

ADDITIONAL TERMS

Special Conditions / Notes

LENDER — Print Name:

By:

Date:

BORROWER — Print Name:

By:

Date:

What the Financial Fuel Agreement Is and When It Applies

A Financial Fuel Agreement is a written contract that documents a short-term funding arrangement between a lender or capital provider and a borrower or obligor. It sets the principal amount, fees, repayment schedule, security or collateral provisions, and events of default. Typical uses include bridge financing, working capital advances, revenue-based draws, and receivables financing. The agreement allocates risk, defines transfer and assignment rights, and establishes remedies. Parties commonly execute this document before disbursing funds and retain signed copies for compliance, audit, and potential enforcement actions.

Why a Clear Financial Fuel Agreement Matters

A well-crafted Financial Fuel Agreement reduces ambiguity about payment timing, interest or fee calculations, and security interests, which lowers litigation and collection risk.

Who Typically Prepares and Signs a Financial Fuel Agreement

Parties vary by transaction size and complexity; common participants include lenders, fintech funders, corporate treasury teams, and legal counsel.

Lenders and funders — credit officers, compliance, and settlement teams author and approve funding terms before disbursement.
Borrowers and company officers — CFO or authorized signatory confirms representations, provides required financial schedules, and accepts repayment terms.
Legal and operations — counsel reviews security language, reporting obligations, and determines whether UCC filings or waivers are required.

Identifying the right signers and internal approvers in advance speeds execution and helps ensure required supporting documents are available at closing.

Common Signatory Roles and Responsibilities

Jane Doe, CFO

As the company's chief financial officer, Jane reviews finance schedules, confirms solvency representations, and signs on behalf of the borrower when corporate authorizations permit. She coordinates with treasury to accept funding and set repayment remittance instructions.

Alpha Capital, VP

The lender's vice president evaluates credit terms, ensures fees are calculated correctly, confirms that required security documents are attached, and signs to bind the funder after compliance completes KYC and AML checks.

Core Components of a Professional Financial Fuel Agreement

A complete agreement is modular and clearly labels each obligation so the parties and any third-party enforcers can locate rights, remedies, and schedules without ambiguity.

Parties

Full legal names and entity types for lender, borrower, and any guarantors; include state of incorporation and business address to establish jurisdiction and service points.

Funding Terms

Specify principal, funding mechanics, draw conditions, disbursement timeline, and whether funding is a one-time advance or a revolving facility with commitment amounts.

Fees and Interest

Describe interest rate or fee structure (fixed, variable, or factor), calculation method, compounding period, and timing for payment of fees and interest.

Security and Collateral

Identify collateral (receivables, inventory, intellectual property), perfection steps (UCC-1 filing), and priority relative to other liens.

Representations & Warranties

Borrower representations about authority, solvency, accuracy of financials, and absence of undisclosed liabilities that influence enforcement and remedies.

Events of Default

Triggering events (payment default, insolvency, breach of covenants), notice periods, cure windows, and lender remedies including acceleration and collateral enforcement.

Key Data Elements Required on Every Agreement

Legal Names: Exact entity or individual names

Addresses: Street, city, state, ZIP

Tax IDs: Employer or SSN/TIN where required

Funding Amount: Principal and currency

Repayment Terms: Schedule and calculation method

Signature Block: Signer name, title, date

Step-by-Step: Completing the Financial Fuel Agreement

Follow these steps in order to prepare, execute, and deliver a compliant agreement that supports timely funding and clarifies enforcement options.

01

Drafting: Assemble terms, exhibits, and financial schedules.
02

Internal Approval: Obtain signatory and compliance approvals before signature.
03

Signatures: Execute with authorized signers and any required witnesses.
04

Post-Execution Steps: File UCC-1, deliver funding, and archive signed documents.

How to Configure an Online Signing Workflow

Set up the digital workflow to ensure correct signing order, authentication, and secure storage before sending the document for signature.

Field	Configuration
Signing Order	Sequential or parallel signer flow
Authentication Method	Email link, SMS code, or KBA
Required Fields	Signature, date, initials, and collateral checkbox
Audit Trail	Enable IP, timestamp, and action logging

Routing and Submission Options for Executed Agreements

Decide in advance where executed originals and copies will be sent to meet legal, compliance, and operational needs.

To Lender: Send fully executed copy to funding and compliance teams
To Borrower: Provide signed copy to borrower records and treasury
UCC Filing: File UCC-1 per state requirements for perfected security interests
Legal Archive: Store PDF and audit trail in secure records management system

Digital Signing and eSubmission: Platform Considerations

Choose a platform that supports the required authentication, audit trail, and integrations with your document management or accounting systems.

Authentication: Email, SMS, or KBA options
Integrations: CRM and ERP connection support
Formats: PDF, DOCX, and form exports

Key Deadlines and Timing Expectations

Track the dates that affect funding, repayment, and filing obligations to avoid missed deadlines and potential penalties.

Effective Date:

Date entered in contract governs accrual and obligations

Funding Date:

Target date for disbursement after execution

Payment Dates:

Scheduled due dates per repayment schedule

UCC Filing Window:

File promptly after execution to protect priority

Document Retention Start:

Retention begins on effective or execution date

Common Mistakes to Avoid When Preparing This Agreement

Using informal or abbreviated party names that impede enforcement or UCC searches.
Leaving repayment calculations ambiguous—specify formula, period, and rounding rules.
Failing to attach financial schedules and exhibits referenced in representations.
Omitting execution authority proof such as corporate resolutions or board approvals.

Risks and Potential Penalties from Errors or Omissions

Incorrect Tax Info: Backup withholding at 24% possible

Late Filings: UCC or regulatory delay harms lien priority

Misstated Amounts: Repayment disputes and possible damages

I-9 Noncompliance: Civil penalties ranging by violation

Intentional Misstatements: May trigger fraud claims and statutory penalties

Data Privacy Breach: HIPAA or state privacy fines possible

eSignature Pricing Snapshot for Executing the Financial Fuel Agreement

Comparing common eSignature vendors and price entry points helps budget for electronic execution and bulk workflows. Pricing below reflects vendor entry-level rates and feature indicators.

	signNow	DocuSign	Adobe Sign	PandaDoc	HelloSign
Starting Price	$8/user/mo	$15/user/mo	$14/user/mo	$19/user/mo	$15/user/mo
Free Trial	7-day trial	Varies	Varies	Varies	Varies
Bulk Send	Yes	Yes	Yes	Yes	Varies
Audit Trail	Yes	Yes	Yes	Yes	Yes
Envelope Cap	No cap	100 envelopes/user/yr	Varies	Varies	Varies

Frequently Asked Questions About the Financial Fuel Agreement

Answers to common practical and legal questions about completing, signing, and storing Financial Fuel Agreements.

Need help? Contact support

Can this agreement be signed electronically?
Yes. Electronic signatures are legally enforceable under the ESIGN Act (15 U.S.C. ch. 96) and UETA in most U.S. jurisdictions when intent, consent, attribution, and retention requirements are met.
Do I need a notary or witness?
Notarization is required if a state or specific collateral filing demands it; some states require witnesses for certain real estate transfers. Confirm with state recording and notary rules.
What happens if a party signs with a different legal name?
A mismatched signatory name can jeopardize enforceability and complicate UCC searches; attach corporate resolutions or an affidavit of authority to clarify signer capacity.
Is a UCC-1 financing statement necessary?
If the lender takes a security interest in personal property or receivables, file a UCC-1 in the appropriate state to perfect priority rights against third parties.
How long should originals be retained?
Keep originals for the agreement term plus at least three years; longer retention may be required for tax, HIPAA, or SEC-regulated records per federal and state rules.
What identification is recommended for online notarization?
RON providers typically require credential analysis and multi-factor authentication, and they retain an audio-video recording per state RON rules; confirm identity proofing requirements with the chosen notary service.

be ready to get more

Join over 28 million airSlate SignNow users

Sign Now