Directors’ Loan Agreement Basic Form – Loan to Company

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.

A simpler alternative to the longer form directors’ loan agreement

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.

What this basic form is intended to cover

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.

When to use the longer form agreement instead

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 '.

Key provisions included in the short form

The short form loan agreement contains clauses dealing with:

• the facility, purpose and drawdown;
• no security, repayments and interest;
• default and payments;
• set-off and assignment; and
• communications and governing law and jurisdiction.

Consumer Credit Act 1974 position

NOTE: This Agreement is not intended to be regulated by the Consumer Credit Act 1974.

Directors’ Loan Agreement Basic Form – Loan to Company is part of Corporate. Just £38.50 + VAT provides unlimited downloads from Corporate for 1 year.