Document background
The Convertible Loan Agreement Template is essential for Australian companies seeking bridge financing or early-stage investment through convertible debt instruments. This document type is particularly valuable for startups and growth companies that need immediate funding but prefer to defer company valuation to a future date. The template covers all critical aspects required under Australian law, including compliance with the Corporations Act 2001 and ASIC regulations. It details the loan terms, conversion mechanisms, investor rights, and protection measures, making it suitable for both sophisticated investors and companies looking to raise capital. The agreement typically precedes a larger equity funding round and includes provisions for automatic conversion upon qualifying funding events, along with necessary safeguards for both the company and investor.
