This Directors’ Loan Agreement – Loan to Company (Basic Form) is a loan agreement specifically designed for a director (or shareholder) making a loan to the company that he or she is a director of.
This basic version follows the structure of our longer form directors’ loan agreement but is designed to be a more straightforward and simple agreement without many of the protections offered by our longer form agreement. This will be appropriate for directors’ lending to companies without requiring security, representations, warranties and covenants to be put in place as a pre-condition to lending.
This Agreement covers all the necessary legal and practical commercial considerations relevant to the lending of small to medium sized amounts for specified periods of time.
Should the lending relationship you seek to achieve require more detail or protection, you may wish to download and use the alternative Directors’ Long Form Loan Agreement – Loan to Company .
The Short Form Loan Agreement contains the following clauses:
1. Definitions and Interpretation
2. The Facility
3. Purpose
4. Drawdown
5. No Security
6. Repayment
7. Interest
8. Default
9. Payments
10. Set-off
11. Assignment
12. Communications
13. Governing Law and Jurisdiction
NOTE: This Agreement is not intended to be regulated by the Consumer Credit Act 1974.
This Loan Agreement template is in open format. Either enter the requisite details in the highlighted fields or adjust the wording to suit your purposes.
Directors’ Loan Agreement Basic Form – Loan to Company is part of Corporate Documents. Just £35.00 + VAT provides unlimited downloads from Corporate Documents for 1 year.