Document background
The Loan Agreement Between Two Companies is a crucial legal document used when one company provides financial assistance to another in Belgium. This agreement is essential for documenting the terms and conditions of corporate lending transactions, ensuring compliance with Belgian financial regulations and EU directives. It's particularly relevant when companies seek alternative financing options outside traditional banking channels, or when parent companies provide funding to subsidiaries. The document addresses key aspects including loan amount, interest rates, repayment terms, security arrangements, and default provisions, all within the framework of Belgian law. It's designed to protect both lender and borrower interests while ensuring enforceability under Belgian jurisdiction. The agreement becomes especially important in cross-group financing, strategic partnerships, or business expansion scenarios where traditional bank financing may not be the preferred option.
