Document background
The Simple Business Loan Agreement is a fundamental financial instrument used in Swiss business transactions when a company requires external funding for its operations, expansion, or other business purposes. This document, governed by Swiss law and particularly the Swiss Code of Obligations, establishes a legally binding relationship between a lender (typically a financial institution) and a business borrower. It is designed for straightforward business lending scenarios where the loan terms are clearly defined and relatively standard. The agreement includes essential elements such as loan amount, interest calculations, repayment schedules, and default provisions, while ensuring compliance with Swiss banking regulations and commercial law requirements. This type of agreement is commonly used for business loans ranging from small to medium-sized facilities where complex syndication or extensive security arrangements are not required.
