Convertible Loan Agreement Template - Sample Term Sheet

Aug 31, 2026

Upload by Gelato

Convertible Loan Agreement Template provides a structured, fill-in form for parties entering into a convertible loan transaction. It defines the parties, funding purpose, loan amount, interest accrual rules, and conversion mechanics triggered by events such as a Qualified Financing or a Take-over. It also addresses issuance timing, rounding of conversion shares, cash reconciliation, and set-off treatment. Guidance notes explain how to complete and finalize the document for multi-lender scenarios.

LanguageEnglish

CategoryForms

FormatDOCX

Pages11

Reading Time4 min

AccessFree to download

How to use this template

Sample term sheet

Parties and recitals

Definitions

The loan

Interest

Conversion

Shareholders agreement

Repayment

Convertible Loan Agreement Template How to use this template: All fields where your input is required are marked in green Statements in the footer are included to assist and guide you in the preparation of this document You should delete all statements in the footer as well as all square brackets from the final form of your document This template assumes a scenario in which convertible loan is raised by more than one lender at the same time, so if there is only one lender in your case, make sure you adjust this template accordingly Reminder: This template, prepared and brought to you by HYPERLINK "http://www.equidam.com/?ref=convertibletemplate" Equidam, serves as a starting point of your convertible loan transaction. The contract is not tailored to your unique circumstances and situation, thus you are strongly advised to seek the assistance of a qualified lawyer to complete it. Additional legal information is provided at the end of this document. Convertible notes bring their own set of valuation negotiations. You can calculate your valuation for free and in minutes by registering on HYPERLINK "https://secure.equidam.com/reserved.php" \l "register/?ref=convertibletemplate" equidam.com. SAMPLE TERM SHEET CONVERTIBLE LOAN AGREEMENT SAMPLE CONVERTIBLE LOAN AGREEMENT THIS AGREEMENT is made on [date/month/year] by and between: [your company name], a [type of company] organized and existing under the laws of [country of incorporation], having its corporate seat in [registered address of the company head office] and registered with the Trade Register of the Chamber of Commerce under number [trade register number] (hereinafter referred to as the “Borrower”), and [company name of the lending entity], a [type of company] organized and existing under the laws of [country of incorporation], having its corporate seat in [registered address of the company head office] and registered with the Trade Register of the Chamber of Commerce under number [trade register number] (hereinafter referred to as the “Lender”); OR [ full name of the lender], an individual, born in [birth place] on [date of birth] and residing at [registered residence address] holder of a valid [passport nationality] passport with number [passport number] (hereinafter referred to as the “Lender”); Borrower and Lender are hereinafter jointly referred to as “Parties” and each one individually as “Party”, WHEREAS: The Borrower conducts a business in the field of [fill in description of the business carried on, or proposed to be carried on by the Company]. The Borrower is in need of funding in order to finance its business and the Lender is willing to provide the Borrower with a convertible loan subject to the terms and conditions laid down by this agreement (hereinafter referred to as the “Agreement”). This Agreement is one of a series of convertible loan agreements entered or to be entered into by the Borrower with lenders with identical terms and in the same form as set forth herein, except that the loan amount and date of issuance may differ. THE PARTIES HAVE AGREED AS FOLLOWS: definitions Unless otherwise stated or defined, the following terms shall have the following meaning for the purposes of this Agreement: the loan The Lender hereby agrees to grant the Borrower a loan in the amount of [fill in amount] (hereinafter referred to as the “Loan”). The Lender shall make the Loan available to the Borrower ultimately [fill in number] days after the signing of this Agreement by payment into the Borrower’s bank account with [name of the bank] and bank account number [bank account number], or into any other bank account as specified for that purpose by the Borrower. interest Interest shall be due on the outstanding sum of the principal amount and interest accrued thereon at a rate of [fill in percentage amount] per annum. The interest shall accrue on a daily basis as per the date of signing of this Agreement and shall be calculated on the basis of the actual number of d

FAQs

What is the purpose of this Convertible Loan Agreement Template?

It serves as a starting point for structuring a convertible loan transaction, including key deal terms like loan, interest, and conversion triggers.

How does conversion work under this agreement?

After a Qualified Financing or a Take-over, the conversion amount is converted into Conversion Shares based on the quotient of the Conversion Amount divided by the applicable Conversion Price.

When is repayment allowed?

In the event of a Qualified Financing exceeding a specified amount, the Lender may choose to convert or to request repayment of the loan plus accrued interest, subject to conditions.

Aug 31, 2026

Upload by Gelato