Are electronic signatures enforceable?

Yes. Electronic signatures are generally enforceable under the federal ESIGN Act (15 U.S.C. ch. 96) and by UETA in most states; exceptions (wills, certain court filings) may apply, so confirm for your transaction.

When is notarization required?

Notarization depends on jurisdiction and whether the agreement or collateral conveyance requires a notarial act; certain recordings or real property security interests commonly require notarization or recording.

How do I perfect a security interest?

Perfect by filing a UCC-1 financing statement in the debtor's state using the debtor's exact legal name; timing affects priority, so file promptly after execution.

Can I use Remote Online Notarization (RON)?

Many states permit RON with identity proofing and recorded audio-video sessions; confirm state notary statutes and retention obligations before relying on RON.

Who must sign for corporate borrowers?

Signers must have authority per corporate documents; obtain a corporate resolution or officer certificate when necessary to evidence signing authority.

What records should be retained?

Keep executed agreements, UCC filings, notices, and audit trails for statutory minimums and longer where industry rules apply (see IRS, HIPAA guidance).

Electronic Signature
Templates
Finance
Funding Loan Agreement

Funding Loan Agreement

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

FUNDING LOAN AGREEMENT

Parties

This Funding Loan Agreement (the Agreement) is entered into as of by and between:

Lender Information

Entity Type Individual Corporation LLC Other

Borrower Information

Entity Type Individual Corporation LLC Other

Recitals

WHEREAS, Lender agrees to make a loan to Borrower for the purposes described in this Agreement and Borrower agrees to borrow and repay the Loan subject to the terms and conditions set forth below.

Loan Terms

Principal Amount: $. Interest shall accrue on the unpaid principal balance at a rate equal to per annum, calculated on a 365/360 basis unless otherwise specified herein.

Funding/Disbursement Date: . Maturity Date: .

Repayment Schedule

Payments shall be applied first to accrued and unpaid interest, then to principal, and shall be made at the address of Lender or by wire transfer in accordance with written payment instructions provided by Lender. Late payments shall incur a late charge of of the overdue amount or the maximum permitted by law, whichever is less.

Prepayment; Fees

Borrower may prepay the Loan in whole or in part at any time without penalty unless a prepayment fee is specified here: .

Payment Instructions

Security

This Loan is: Secured Unsecured.

Collateral Description (if secured)

Representations and Warranties

Each Party represents and warrants to the other that: (a) it has full power and authority to enter into and perform this Agreement; (b) the execution and delivery of this Agreement and the performance of its obligations under this Agreement do not and will not violate any material agreement or applicable law; and (c) no consent, approval or authorization of any third party is required except as identified in writing to the other Party.

Covenants

Borrower covenants that, from the date hereof until repayment in full, Borrower will: (a) use the Loan proceeds only for the purposes described in this Agreement; (b) maintain its existence and good standing; and (c) provide Lender with financial statements and other information reasonably requested by Lender.

Events of Default

Each of the following shall constitute an Event of Default: (a) Borrower fails to make any payment when due and such failure remains uncured for days; (b) Borrower breaches any representation, warranty or covenant and such breach is not cured within days after notice; (c) Borrower becomes insolvent, makes an assignment for the benefit of creditors, or a bankruptcy petition is filed by or against Borrower.

Remedies; Acceleration

Upon the occurrence of an Event of Default, Lender may, at its option and without notice other than as required by applicable law, declare the entire outstanding principal, accrued interest and other sums due and payable immediately. Lender shall be entitled to exercise all rights and remedies available at law or in equity, including foreclosure or enforcement of any security interest.

Costs; Taxes

Borrower shall pay all reasonable costs and expenses (including attorneys' fees) incurred by Lender in enforcing this Agreement following an Event of Default. All payments required hereunder are exclusive of any taxes imposed by any governmental authority; Borrower shall be responsible for any such taxes, except for taxes imposed on Lender's net income.

Notices

All notices and communications shall be in writing and delivered to the addresses provided below or such other address as a Party may designate by notice. Notices shall be effective upon personal delivery, confirmed overnight courier, or three (3) days after deposit in the United States mail, postage prepaid.

Lender Notice Address Borrower Notice Address

Assignment; Amendment; Waiver

Borrower may not assign any of its rights or obligations under this Agreement without Lender's prior written consent. This Agreement may be amended only by a writing signed by both Parties. No delay or failure by a Party to exercise any remedy shall constitute a waiver of that remedy.

Governing Law; Jurisdiction

This Agreement shall be governed by and construed in accordance with the laws of the State of without regard to conflicts of law principles. The Parties submit to the exclusive jurisdiction of the state and federal courts located in that State for resolution of disputes.

Confidentiality

Except as required by law, each Party agrees to keep confidential the terms of this Agreement and any non-public information obtained from the other Party, and to use such information solely to perform its obligations hereunder.

Miscellaneous

If any provision of this Agreement is held to be invalid or unenforceable, the remaining provisions will remain in full force and effect. This Agreement constitutes the entire agreement between the Parties with respect to the subject matter hereof and supersedes all prior agreements and understandings, whether written or oral.

Additional Terms or Notes

Lender Printed Name:

By:

Date:

Borrower Printed Name:

By:

Date:

What a Funding Loan Agreement Is

A Funding Loan Agreement is a legally binding contract between a funder (lender) and a borrower that sets out the principal, advance mechanics, fees, repayment schedule, security interests, and conditions precedent to funding. It documents collateral descriptions, representations and warranties, events of default, and remedies such as acceleration and enforcement. Parties use the agreement to allocate risk, establish priority through UCC filings where applicable, and record procedures for notices, reporting, and dispute resolution to support enforceability and audit readiness.

Why a Clear Agreement Matters

A concise Funding Loan Agreement reduces ambiguity about repayment, collateral, and remedies, protects lender priority through proper perfection, and creates an auditable record for tax, compliance, and potential enforcement.

Who Typically Uses This Agreement

Common users include funders, borrowers, and counsel involved in short-term financing, factoring, or receivables-based lending.

Banks and credit funds that originate secured loans or purchase receivables in secondary markets.
Small and midsize businesses seeking working capital by assigning invoices or obtaining short-term bridge loans.
Law firms and in-house counsel responsible for drafting, reviewing, and perfecting security interests through UCC filings.

Ensure signatories have corporate authority and confirm any required notarization, witness, or UCC perfection steps before funding.

Essential Sections to Include

Cover these core sections to make a Funding Loan Agreement enforceable and operational for both parties.

Parties

Identify each legal entity using full legal names and organizational form, including EIN or state registration details, to avoid ambiguity in enforcement and filing.

Funding Terms

Specify principal, advance rate, draw mechanics, disbursement conditions, and timing so each funding event and borrower obligation is crystal clear.

Security Interest

Describe collateral precisely, grant a security interest, and explain steps for perfection, including required UCC-1 filings and priority rules.

Repayment & Fees

List interest, fees, repayment schedule, prepayment terms, and default interest to calculate outstanding obligations and late penalties unambiguously.

Default & Remedies

Define events of default, cure periods, acceleration rights, setoff, and collateral enforcement procedures to reduce dispute risk and operational delay.

Representations

Include borrower and lender reps, accuracy warranties, and covenant language to support reliance, audit, and indemnity provisions if representations fail.

Step-by-Step: From Draft to Funding

Follow these steps to execute and perfect a Funding Loan Agreement with minimal friction.

01

Draft: Prepare terms, collateral descriptions, and schedules in draft form.
02

Review: Have counsel review and negotiate representations and covenants.
03

Execute: Obtain signatures, notarization if required, and witness attestation.
04

Perfect: File UCC-1 financing statements and any required recordings promptly.

Configure an Online Signing Workflow

Typical digital workflows include authentication, conditional fields, version control, and audit trail settings to meet compliance needs.

Field	Configuration
Signature Authentication	Email plus SMS code or SSO with MFA for higher assurance.
Conditional Fields	Show repayment schedules only when specific funding options are selected.
Bulk Send	Enable for repeatable programs; use templated variables for borrower data.
Audit Trail	Capture IP, timestamps, and signer actions for evidentiary records.

Where to Send, Sign, and Record

Know each destination and action required after signatures to ensure enforceability and public notice where needed.

To Borrower: Send executed copies to borrower and their counsel for records.
To Lender: Lender retains original signed agreement and funding schedule.
Notary Office: If notarization is required, schedule RON or in-person notarization.
Filing Office: File UCC-1 with state filing office to perfect security interest.

Digital Signing and Format Requirements

Use a signing platform that supports PDF and DOCX signing, secure storage, and verifiable audit trails for loan documentation.

Integrations: Salesforce, NetSuite, Google Workspace supported.
Authentication: Email links, SMS codes, SSO; optional KBA for added assurance.
File Formats: PDF, DOCX, and fillable templates supported.

Confirm the platform provides tamper-evident signed PDFs, export for long-term archival, role-based access controls, a detailed Audit Trail, and options for HIPAA or 21 CFR Part 11 support when those regimes apply.

Typical Timelines and Processing Expectations

Expectable timelines help manage funding, notice, and perfection tasks tied to execution and collection.

Funding Disbursement Window:

Often within 1–5 business days after all conditions are satisfied.

Cure or Notice Period:

Commonly 5–30 days depending on negotiated default cure terms.

Repayment Schedule:

Set dates in agreement; monthly or per-invoice schedules are typical.

UCC Filing Timing:

File UCC-1 promptly after execution to preserve priority.

Documentation Retention:

Maintain executed originals and digital copies per policy and law.

Key Milestones from Negotiation to Ongoing Monitoring

A sequential view of major milestones and what to expect at each stage.

01

Negotiation Complete

Terms agreed and draft finalized for signature.

02

Execution & Notarization

Parties sign, and notarization occurs if required.

03

Funding Disbursement

Funder releases funds after conditions precedent are met.

04

Monitoring & Reporting

Lender monitors receivables, compliance, and covenants ongoing.

Common Preparation Errors to Avoid

Incomplete debtor legal name or wrong EIN that undermines UCC-1 perfection and creates priority disputes.
Vague collateral descriptions that fail to identify covered accounts or intellectual property precisely for enforcement.
Omitting cure periods or ambiguous default definitions that lead to contested acceleration or litigation.
Failing to obtain required notarization or witness signatures where jurisdictional rules demand them.

Short Risks and Immediate Consequences

Loss of Priority: Unperfected security interest

Tax Withholding: Incorrect TIN triggers backup withholding

Enforcement Delay: Ambiguous collateral slows remedies

Regulatory Exposure: Noncompliance with HIPAA or 21 CFR

Contract Voidability: Unauthorized signer may void agreement

Increased Costs: Late filings and legal disputes

eSignature Vendor Comparison for Funding Loan Agreements

Compare common capability and pricing points. signNow appears first; confirm vendor specifics and plan terms directly with each provider.

	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	Yes, 7-day trial	Varies by vendor	Varies by vendor	Varies by vendor	Varies by vendor
Bulk Send	Yes (Premium)	Yes	Yes	Yes	Varies
Audit Trail	Yes	Yes	Yes	Yes	Yes
HIPAA Compliant	Yes	Yes	Yes	No	No

Frequently Asked Questions

Answers to common legal, execution, and filing questions about Funding Loan Agreements and electronic execution.

Need help? Contact support

Are electronic signatures enforceable?
Yes. Electronic signatures are generally enforceable under the federal ESIGN Act (15 U.S.C. ch. 96) and by UETA in most states; exceptions (wills, certain court filings) may apply, so confirm for your transaction.
When is notarization required?
Notarization depends on jurisdiction and whether the agreement or collateral conveyance requires a notarial act; certain recordings or real property security interests commonly require notarization or recording.
How do I perfect a security interest?
Perfect by filing a UCC-1 financing statement in the debtor's state using the debtor's exact legal name; timing affects priority, so file promptly after execution.
Can I use Remote Online Notarization (RON)?
Many states permit RON with identity proofing and recorded audio-video sessions; confirm state notary statutes and retention obligations before relying on RON.
Who must sign for corporate borrowers?
Signers must have authority per corporate documents; obtain a corporate resolution or officer certificate when necessary to evidence signing authority.
What records should be retained?
Keep executed agreements, UCC filings, notices, and audit trails for statutory minimums and longer where industry rules apply (see IRS, HIPAA guidance).

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