How to conclude a financial assistance agreement?

The state of the Ukrainian economy has undergone significant changes since the beginning of the full-scale invasion. Now it is difficult to fully calculate the exact amount of lost profits of enterprises, however, according to available data, the losses of the Ukrainian economy already exceed 600 billion dollars.

This situation in the economy led to a wave of agreements on the provision of repayable and non-repayable financial assistance between enterprises.

That is why, having received many questions on the intricacies of concluding agreements on the provision of repayable financial assistance in Ukraine, our specialists have already prepared answers.

If it is necessary to draw up an individual agreement on the provision of reimbursable financial assistance, we recommend using the Consultant legal services service to order a turnkey document.

Content and essential terms of the financial assistance agreement

At the moment, there are no specific legal requirements for concluding an agreement on the provision of repayable financial assistance in Ukraine. However, it should be noted that such an agreement will be governed by the norms of the Civil Procedure Code.

An agreement on the provision of repayable financial assistance can be equated in its content to a loan agreement, so most of the essential conditions will be the same.

At the same time, experts recommend paying attention to certain provisions of such an agreement, which must be fixed:

●     The subject of the agreement (it is necessary to indicate the absence of accruals of interest on the amount of money provided);

●     The amount of the benefit (the amount must be specific and fixed in numerical value and in words);

●     The procedure for transferring funds (in cash or non-cash and additional conditions for transferring funds from the lender, and the procedure for transferring funds by the borrower);

●     The procedure and terms for the return of funds;

●     Method of ensuring the return of funds (we recommend fixing certain sanctions for violation of the terms and procedure for the return of funds by the borrower);

Our experts recommend that you first obtain professional advice from lawyers in the field of contract law in order to conclude a contract for the provision of reimbursable financial assistance and achieve the desired result.

Key points when concluding an agreement on the provision of financial assistance

When concluding any contract, you must be extremely vigilant so as not to forget important points. Above, we have described the essential terms and conditions that you need to pay attention to.

The agreement on the provision of financial repayable assistance in Ukraine does not need to be notarized. However, such a right remains with the parties to the contract, who, if desired, can notarize it.

Specialists in the legal marketplace "Consultant" should note that it is extremely important to witness the transfer of funds. Usually a receipt is drawn up about this. It will be considered an annex to the contract and, in the event of a dispute in court, will contribute to the rapid resolution of this dispute and the recovery of funds from the debtor.

If you need to analyze the contract for the provision of repayable or non-refundable financial assistance or develop an individual document, we suggest using our legal services service Consultant. Our specialists will be able to best assist in the preparation of the document, and if necessary, create a completely new one in accordance with your situation.

Financial aid contract template

The best lawyers from the field of contracts and disputes based on contracts are ready to provide appropriate advice! We offer high quality services with comfortable service.

It has become much easier to purchase a sample agreement on the provision of non-refundable financial assistance in Kyiv! You can upload a document in a few simple steps:

●     Download the mobile application "Consultant";

●     After a short registration, you can find the required document in the "Documents" section;

●     By clicking the "Buy Template" button, you will immediately receive a link to download the document.