Document background
The Loan Agreement Between Companies is a fundamental commercial document used when one company provides financial assistance to another in Denmark. It serves as the primary legal instrument governing corporate lending transactions, establishing clear terms for the loan facility while ensuring compliance with Danish corporate and financial regulations. This document is essential for any inter-company financing, whether between related entities or independent businesses, and can be adapted for various purposes including working capital, expansion, acquisition financing, or refinancing existing debt. The agreement must comply with Danish law, particularly the Danish Contracts Act, Interest Act, and Companies Act, and typically includes comprehensive provisions on loan disbursement, interest calculation, repayment terms, security arrangements, and default scenarios. It's particularly important for maintaining clear documentation of financial obligations and protecting both lender and borrower interests under Danish jurisdiction.
