Convertible Loan Agreement

Summary

This precedent is a standard document for a convertible loan agreement. This form assumes a transaction involving one borrower and one lender. This precedent is for a loan agreement which will either be repaid or, in most cases, convert into equity at a future date. This document contains practical guidance and drafting notes. This is a standard document for a convertible loan agreement. This form assumes a transaction involving one borrower and one lender. This precedent is for a loan agreement which will either be repaid or, in most cases, convert into equity at a future date. A borrower would be interested in using a convertible loan agreement to leverage its equity in the company. The convertible loan agreement is typically used in additional to the lender obtaining security in collateral. The value of the equity would be based on the value of the company determined by the commercial personnel and in turn, would be used in setting the financial milestones. Convertible loan ...