Document background
The Revenue Loan Agreement under Austrian law is designed for businesses seeking alternative financing solutions where traditional debt or equity financing may not be optimal. This document is typically used when a company needs growth capital but wants to align repayment obligations with its revenue performance. The agreement details the loan amount, revenue share percentage, payment mechanisms, and reporting requirements, all while ensuring compliance with Austrian banking regulations and civil law requirements. It's particularly relevant for companies with recurring revenue models or predictable revenue streams. The Revenue Loan Agreement includes specific provisions for revenue calculation, monitoring rights, and protective covenants, while incorporating necessary elements required under Austrian law such as proper identification of parties, clear payment terms, and appropriate security arrangements if applicable. This financing structure offers flexibility compared to traditional loans while providing clear guidelines for both lender and borrower.
