Loan Agreement

Key Points and English Template

On this page, we provide you with an overview of the most important aspects of a Loan Agreement in Switzerland, including the elements to be taken into account when drawing up the agreement.

Subsequently, we will provide you with a legally compliant template of a Loan Agreement  under Swiss law.

Use a Loan Agreement if ...

… your cash flow is temporarily strained, and you need a loan

… your business needs to borrow funds to finance a new project

… you are willing to grant a loan to a company and wish to formalize the agreed conditions

Key Points included in a Loan Agreement

What is a Loan Agreement?

Under a loan agreement, a lender agrees to provide a certain amount of money to a borrower as a loan against payment of interest

The interest is used to compensate the lender for providing the money and to cover the borrower’s credit risk. 

The loan may be granted for an indefinite period of time, in which case the lender may generally require repayment at any time upon notice. Alternatively, the parties may agree to a fixed repayment term or a minimum duration. 

Very often, the borrower undertakes to provide the lender with collateral that serves to guarantee the repayment of the loan and enables the borrower to cover part of its losses in the event of the borrower’s default. The range of possible securities is very broad: for example, a guarantee or security from a third partyassignment of claimstransfer of ownership of machinery or pledging of shares. Which type of security will be used depends on the nature of the borrower’s business and the risk taken by the lender.

Please create a free account and log in to your Approovd account. You can start creating the document you want and, only when you are convinced of its quality, you can choose the appropriate subscription

All our templates have been checked and validated by renowned Swiss lawyers. They are constantly updated according to legal practice.

Your Contract in 3 Steps

Buy the documents you need and create your account

Answer questions with the help of virtual assistance and create your contracts in minutes

Download your contracts as Word or PDF. Get help from a lawyer if needed

This might also interest you

Request for Rent Reduction or Remission for Business Premises
Agreement Regarding the Partial Remission of Rent
Request For an Extension of The Payment Deadline or (Partial) Remission of A Claim
Sublet Agreement
Subordination Agreement

Create clever contracts today

Discover our contract library with over 200 smart templates in English, German and French. 

Happy business woman using Approovd for innovative contract management