Loan Agreement
About Loan Agreement
The Loan Agreement template by Skala is a simple, no-nonsense way to document a loan between a founder and their own company (or anyone else, really). It sets out the loan amount, repayment terms, interest (if any), and governing law in a format that’s actually readable.
One of the most common early-stage funding sources is a founder reaching into their own pocket. This template is made for exactly that: lending money to your company to get it off the ground, before the revenue, before the raise, and ideally before your first tax reporting period turns into a spreadsheet headache.
It’s for founders, investors, and teams who want to make things official without making things complicated.
What’s Inside
This template covers all the usual suspects: how the loan gets sent, how it gets repaid, what happens if it doesn’t, and what law governs it all. It’s designed to work in practice, not just look good in a folder.
Loan Disbursement
The lender wires the money within 5 business days. Each transfer gets its own timestamp and treatment as a separate disbursement. Everyone pays their own fees. No drama, no surprises.
Repayment Obligations
You can include an interest rate, or not. You can set a fixed schedule, or leave it open. Borrowers can repay early any time, with zero penalties and zero side-eye.
Events of Default
Miss a payment? File for bankruptcy? Shut down operations? That triggers immediate repayment. No need for courtroom suspense, everything’s spelled out.
Term and Termination
The agreement kicks in on the effective date and lasts until the loan is fully repaid. If both parties want to extend the term, just put it in writing. Easy.
No Assignment
Neither party can hand off their obligations to someone else unless it’s part of a merger or asset sale. This keeps control in the hands of the original players, which is usually where it belongs.
Governing Law
You get options: New York, UK, Singapore, UAE, or “Other.” Use UAE only if there’s no interest rate. We don’t make the rules, but we do try to follow them. In general, pick the law that actually has something to do with your business.
One Document. Countless deals.
FAQ
The exercise price of the shares under the FAST agreement will be determined at the time of issuance and will be included in the applicable Stock Purchase Agreement.
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FAQ
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