Document background
The Convertible Loan Note Agreement is primarily used in the Netherlands for early-stage company financing or bridge funding scenarios where immediate equity valuation may be challenging or premature. This document type is particularly valuable when companies need quick access to capital while deferring complex valuation discussions to a future funding round. The agreement, governed by Dutch law, provides a structured framework for converting debt into equity upon specified trigger events such as qualified financing rounds, exits, or maturity. It includes essential provisions required under Dutch corporate law, such as interest rate regulations, security registration requirements if applicable, and corporate approval procedures. The document typically incorporates both standard Dutch market practices and international investment terms, making it suitable for both domestic and cross-border transactions.
