<aside> 💡 Disclaimer: This page has an informative character only; every loan agreement is eventually personalised to a specific company.
Every loan is part of a syndicated loan agreement between three parties:
Each loan’s repayment is personalised to the company's growth plan and a combination of Type A (amortising) and Type B (bullet) loans.
|Amount of Financing
|Amortising loan part
|An https://corporatefinanceinstitute.com/resources/commercial-lending/amortizing-loan/ loan in the amount of [∙] EUR with an interest-only period of [∙] months, with the base interest of [∙] p.a., maturity of 24 months and with 3.0 % prepayment fee.
|Bullet loan part
|A https://corporatefinanceinstitute.com/resources/fixed-income/bullet-loan/ loan in the amount of [∙] EUR, with the base interest of [∙] p.a., maturity of 24 months and with 3.0 % prepayment fee.
|Use of proceeds & ranking
|Senior secured loan for working capital
|The Company should pay an all-inclusive fee of 2.5% of the amount of financing upon successful closing of the financing.
|Information and Reporting Rights
|The Company shall report to Threshold Capital monthly unaudited profit and loss, balance sheet, cash flow statements, account receivables, account payables and bank accounts. The Company presents to Threshold Capital the annual budget before the start of the financial year. The Company should share all important material information which may impact its ability to repay the loan.
|Company pledges current and future account receivables.
|Minimal cash balance of at least four (4) multiples of its Net Burn Rate (average monthly difference between all cash inflows and all cash outflows for the last 12 months period) or one (1) multiple of its average monthly all cash outflows.
|The Company and Owners shall provide standard warranties with respect to the Company their ownership interest, including a warranty as to the balance sheet of the Company as per the date of completion of the Financing and a warranty that all IP rights which the company uses to conduct its business. Owners of the Company guarantee that the Company is in good financial and business standing, with a proper management system and has no obligations to 3rd parties (excluding those presented to the lender) outside the ordinary course of business.
|Threshold Capital will need the following documents before providing the financing, such as the latest financial statements, subordination of all existing loans which are linked to investors and management and all necessary corporate documents.