The Shareholder Loan Agreement is commonly used when a company requires additional financing and opts to receive it from existing shareholders rather than external lenders. This approach is particularly common in German corporate practice, especially for medium-sized companies (Mittelstand) and start-ups. The document must comply with specific German legal requirements, including subordination provisions under the Insolvency Code (InsO), arm's length principles for tax purposes, and corporate law restrictions. The agreement typically includes detailed provisions on interest calculation, repayment terms, information rights, and potential conversion features. It's essential to properly structure these loans to avoid recharacterization risks and ensure compliance with German corporate and tax laws.
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
Your data doesn't train Genie's AI
You keep IP ownership of your docs
Alternatively...
1. Parties: Identification of the Lender (Shareholder) and Borrower (Company), including registration details and addresses
2. Background: Recitals explaining the shareholding relationship and purpose of the loan
3. Definitions: Definitions of key terms used throughout the agreement
4. Loan Amount and Purpose: Specification of the loan amount, currency, and intended use
5. Interest: Interest rate, calculation method, and payment terms in compliance with German arm's length principles
6. Drawdown: Conditions and mechanics for drawing down the loan
7. Repayment: Terms and schedule for repayment, including any early repayment provisions
8. Subordination: Provisions regarding loan subordination in accordance with German insolvency law
9. Representations and Warranties: Standard representations and warranties from both parties
10. Information Rights: Borrower's obligations to provide financial and other information
11. Events of Default: Circumstances constituting default and consequences
12. Taxes: Treatment of taxes and withholding requirements
13. Notices: Communication requirements and contact details
14. Governing Law and Jurisdiction: Confirmation of German law application and jurisdiction
1. Security: Details of any security provided for the loan - include if loan is secured
2. Conversion Rights: Terms for converting loan to equity - include if conversion features are desired
3. Multiple Lenders: Provisions for multiple shareholders providing loans - include if more than one lender
4. Currency Protection: Provisions for dealing with currency fluctuations - include for non-EUR loans
5. Costs and Expenses: Allocation of costs - include if significant transaction costs expected
6. Assignment and Transfer: Rules for transferring the loan - include if transfers likely
7. Shareholder Consent Requirements: Additional approval requirements - include if required by articles
1. Drawdown Notice: Form of drawdown request
2. Repayment Schedule: Detailed amortization schedule if installment repayment
3. Calculation of Interest: Detailed interest calculation methodology
4. Security Documents: Forms of security documents if loan is secured
5. Shareholder Resolution: Copy of shareholder approval for the loan
6. Company's Bank Account Details: Payment instructions for loan disbursement
7. Existing Financial Indebtedness: List of company's existing loans and financial obligations
Authors
Find the document you need
Seller Financing Business Contract
A German law-governed agreement combining business sale and seller financing terms, enabling business acquisition through direct seller financing arrangements.
Download
Loan For Use Agreement
A German law agreement (governed by BGB) where one party grants another the temporary, free-of-charge use of an item with specified terms and conditions for its use and return.
Download
Official Loan Agreement
A German law-governed agreement establishing the terms and conditions of a loan, including amount, interest, repayment terms, and parties' obligations in compliance with BGB requirements.
Download
Financing Contract Agreement
German law-governed financing agreement (Darlehensvertrag) establishing terms for financial facilities between lender and borrower.
Download
Auto Loan Contract
A German law-governed vehicle financing agreement that enables automobile purchases through structured lending arrangements, incorporating German consumer protection requirements and EU financial regulations.
Download
Auto Finance Contract
A German law-governed vehicle financing agreement establishing terms for vehicle purchase through structured payments, compliant with German banking and consumer protection regulations.
Download
Factoring Receivables Agreement
A German law agreement governing the sale and assignment of trade receivables from a business to a financial institution, structured under German civil and banking regulations.
Download
Instrument Loan Agreement
A German law agreement governing the temporary loan of musical instruments, detailing terms of use, care obligations, and return conditions under BGB regulations.
Download
Equipment Lease To Own Agreement
A German law-governed agreement combining equipment lease with eventual ownership transfer upon completion of scheduled payments.
Download
Intercompany Revolving Loan Agreement
A German law-governed agreement establishing a revolving loan facility between related companies within the same corporate group.
Download
Informal Loan Agreement
German law-compliant informal loan agreement template for private lending arrangements, following BGB requirements.
Download
Vendor Finance Agreement
A German law-governed agreement establishing terms for vendor-provided financing arrangements, including payment terms, security, and compliance with German banking regulations.
Download
Non Recourse Loan Agreement
A German law-governed agreement limiting the lender's recovery rights exclusively to specified collateral assets, without recourse to the borrower's other assets.
Download
Revolving Credit Loan Agreement
A German law-governed agreement establishing a revolving credit facility that enables flexible borrowing, repayment, and reborrowing of funds, structured in compliance with German banking regulations and civil law requirements.
Download
Project Finance Agreement
German law-governed agreement establishing terms and conditions for project-specific financing, including loan facility, security structure, and regulatory compliance requirements.
Download
Shareholder Loan Agreement
German law-governed agreement setting out terms for a loan from a shareholder to their company, including subordination and regulatory compliance requirements.
Download
Mortgage Loan Agreement
A German law-governed agreement establishing terms for a secured real estate loan, including financing conditions and property security arrangements.
Download
Seller Financing Contract
A German law-governed agreement combining sale and financing terms, where the seller provides credit to the buyer for asset purchase, structured under BGB requirements.
Download
Loan Agreement Contract
German law-governed loan agreement establishing terms for monetary lending, compliant with BGB and German banking regulations.
Download
Equipment Loan Agreement
A German law-governed agreement for temporary equipment loans between parties, structured under BGB requirements.
Download
Basic Loan Agreement
A German law-governed agreement establishing terms and conditions for a loan between parties, compliant with the German Civil Code (BGB).
Download
Genie’s Security Promise
Genie is the safest place to draft. Here’s how we prioritise your privacy and security.
Your data is private:
We do not train on your data; Genie’s AI improves independently
All data stored on Genie is private to your organisation
Your documents are protected:
Your documents are protected by ultra-secure 256-bit encryption
We are ISO27001 certified, so your data is secure
Organizational security:
You retain IP ownership of your documents and their information
You have full control over your data and who gets to see it
