Document background
The Small Business Loan Agreement is a crucial document used in the Netherlands when a financial institution provides funding to a small or medium-sized enterprise (SME). It serves as the primary contract governing the lending relationship, incorporating requirements from Dutch banking regulations and civil law. This agreement is typically used when businesses need capital for expansion, working capital, equipment purchase, or other business purposes. The document includes essential elements such as loan terms, security provisions, representations and warranties, and compliance requirements under Dutch law. It's designed to protect both the lender's interests through security and covenants while providing the borrower with clear terms and conditions. The agreement must comply with Dutch financial regulations, including the Wet op het financieel toezicht (Wft) and relevant provisions of the Burgerlijk Wetboek.
