Document background
The Business Loan Agreement serves as the primary legal document for commercial lending transactions in Denmark, establishing the contractual relationship between financial institutions and business borrowers. This document is essential when a business seeks external financing for purposes such as expansion, working capital, asset acquisition, or project funding. It must comply with Danish financial regulations, including the Financial Business Act and Danish Contracts Act, while incorporating necessary security arrangements, reporting requirements, and enforcement mechanisms. The agreement typically includes detailed terms regarding loan disbursement, interest calculations, repayment schedules, events of default, and borrower covenants, all structured within the Danish legal framework.
