Document background
The Simple Convertible Loan Agreement Template is designed for use in the United Arab Emirates business environment, particularly suited for startup financing and growth capital arrangements. This document provides a standardized framework for lenders and companies to structure convertible debt financing, combining traditional loan elements with the potential for equity conversion. The template complies with UAE Federal Laws, including Companies Law and Commercial Transactions Law, while accommodating both conventional and Shariah-compliant variations. It's particularly valuable for early-stage companies seeking bridge financing or pre-Series A funding, offering flexibility in terms of valuation timing. The agreement includes essential provisions for loan terms, conversion mechanics, shareholder rights, and regulatory compliance specific to the UAE jurisdiction.
