Document background
The Shareholder Loan Agreement is commonly used in the Netherlands when a company requires additional funding and opts to receive it from existing shareholders rather than external financial institutions. This approach often provides more flexible terms and can be implemented more quickly than traditional bank financing. The document is particularly relevant for small to medium-sized enterprises (SMEs) and private companies where shareholders have the capacity to provide financial support. It must comply with Dutch corporate law requirements, including provisions of the Dutch Civil Code and corporate tax regulations. The agreement typically includes detailed terms about the loan facility, interest calculations, repayment schedules, and may also address subordination to other company debt. It's essential to carefully structure these agreements to avoid potential recharacterization of the loan as equity under Dutch tax law.
