Ƶ

Convertible Loan Agreement Startup Template for Singapore

Create a bespoke document in minutes, or upload and review your own.

4.6 / 5
4.8 / 5

Let's create your Convertible Loan Agreement Startup

Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.

Get your first 2 documents free

Your data doesn't train Genie's AI

You keep IP ownership of your information

Key Requirements PROMPT example:

Convertible Loan Agreement Startup

"Need a Convertible Loan Agreement Startup for a seed investment of SGD 500,000 into my fintech company, with a 20% discount rate on conversion and a valuation cap of SGD 5 million, to be completed by March 2025."

What is a Convertible Loan Agreement Startup?

The Convertible Loan Agreement Startup is a crucial financing instrument in Singapore's vibrant startup ecosystem. It serves as a bridge between debt and equity financing, typically used during early funding stages when company valuation may be premature or challenging. The agreement details loan terms, conversion mechanisms, interest rates, and triggers for conversion, while complying with Singapore's regulatory requirements. This document is particularly valuable for startups seeking flexible funding options without immediate equity dilution, while giving investors potential upside through future equity conversion rights. The agreement must align with Singapore's Companies Act, Securities and Futures Act, and relevant financial regulations.

What sections should be included in a Convertible Loan Agreement Startup?

1. Parties: Identification of lender and borrower with full legal details

2. Background: Context of the loan and relationship between parties

3. Definitions: Key terms used throughout the agreement

4. Loan Amount and Purpose: Specification of loan amount and intended use

5. Interest: Interest rate, calculation method, and payment terms

6. Conversion Rights: Terms and conditions for converting loan to equity

7. Repayment Terms: Schedule and conditions for loan repayment

8. Events of Default: Circumstances constituting default and consequences

9. Representations and Warranties: Statements of fact by both parties

What sections are optional to include in a Convertible Loan Agreement Startup?

1. Security: Details of any collateral or security provided - used when loan is secured

2. Information Rights: Lender's rights to company information - used when lender requires ongoing company updates

3. Board Observer Rights: Rights to attend board meetings - used when lender requests board observation rights

4. Pre-emptive Rights: Rights in future funding rounds - used when lender wants participation rights in future rounds

What schedules should be included in a Convertible Loan Agreement Startup?

1. Conversion Mechanics: Detailed procedures for conversion process

2. Form of Conversion Notice: Template for exercising conversion rights

3. Cap Table: Current and post-conversion shareholding structure

4. Company Information: Key corporate and financial information

5. Repayment Schedule: Detailed payment timeline if applicable

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions







































Clauses






























Industries

Companies Act (Cap. 50): Primary legislation governing company operations, share/debenture issuance, share capital modifications, and directors' duties in Singapore. Essential for structuring the conversion terms and share issuance provisions.

Securities and Futures Act (Cap. 289): Regulates securities offerings, trading, and defines prospectus exemptions. Critical for ensuring compliance with securities regulations when structuring the conversion features of the loan.

Moneylenders Act (Cap. 188): Controls money lending activities, provides certain loan exemptions, and sets interest rate restrictions. Relevant for ensuring the loan terms comply with Singapore's lending regulations.

Singapore Contract Law: Common law principles governing contract formation, validity, and enforcement in Singapore, including the Unfair Contract Terms Act (Cap. 396). Forms the basic legal framework for the agreement.

Banking Act (Cap. 19): Sets out regulatory requirements for lending activities by financial institutions. Relevant if the lender falls under banking sector regulations.

Income Tax Act: Governs tax treatment of convertible loans, interest deductibility, and conversion features. Essential for understanding tax implications of the loan structure.

Stamp Duties Act: Determines applicable stamp duties on loan documents and subsequent share issuance upon conversion. Important for cost considerations and compliance.

Personal Data Protection Act 2012: Regulates the collection, use, and disclosure of personal data in Singapore. Relevant for handling personal information in the agreement and obtaining necessary consents.

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

Find the exact document you need

Private Equity Management Agreement

A Singapore-law governed agreement establishing terms for private equity fund management services, regulated by MAS.

find out more

Private Equity Employment Agreement

A Singapore-law governed employment agreement for private equity professionals, addressing industry-specific compensation and regulatory requirements.

find out more

Equity Compensation Agreement

A Singapore-law governed agreement defining terms for granting equity-based compensation to employees or eligible participants.

find out more

Sweat Equity Partnership Agreement

A Singapore-law governed agreement establishing terms for acquiring partnership interests through service contribution instead of capital investment.

find out more

Sweat Equity Contract

A Singapore-governed agreement allowing individuals to earn company ownership through services rather than monetary investment.

find out more

Startup Advisor Equity Agreement

A Singapore-law governed agreement establishing equity compensation terms between a startup and its advisor.

find out more

Simple Agreement For Equity

A Singapore-law governed investment instrument that converts to equity at a future date, commonly used for startup funding.

find out more

Equity For Services Agreement

A Singapore-law governed agreement exchanging professional services for company equity, including service terms and equity compensation details.

find out more

Convertible Loan Stock Agreement

A Singapore law-governed agreement establishing terms for convertible loan stock issuance, combining debt financing with potential equity conversion rights.

find out more

Equity Agreement Contract

A Singapore law-governed agreement establishing terms for equity share issuance or transfer, including rights, obligations, and regulatory compliance requirements.

find out more

Founder Equity Agreement

A Singapore-law governed agreement establishing ownership rights and responsibilities among company founders.

find out more

Employee Stock Grant Agreement

A Singapore-law agreement documenting the terms and conditions of company shares granted to employees as part of their compensation package.

find out more

Preferred Equity Agreement

A Singapore law-governed agreement establishing terms for preferred share issuance, including investor rights and privileges.

find out more

Placement Agent Agreement Private Equity Fund

A Singapore-governed agreement establishing terms for marketing and distributing private equity fund interests through a licensed placement agent.

find out more

Equity Split Agreement

A Singapore-law governed agreement that formally establishes how ownership stakes in a business are divided among shareholders.

find out more

Private Equity Finder's Fee Agreement

A Singapore law-governed agreement setting out terms for finder's fee arrangements in private equity investments, including service scope and fee structures.

find out more

Convertible Loan Agreement Startup

A Singapore law-governed agreement for providing convertible debt funding to startups, with provisions for future equity conversion.

find out more

Private Equity Purchase Agreement

A legal agreement governing private equity investments and acquisitions under Singapore law, outlining terms, conditions, and obligations of the transaction.

find out more

Restricted Stock Grant Agreement

A Singapore law-governed agreement documenting the grant of restricted company shares to employees or contractors, subject to vesting conditions and transfer restrictions.

find out more

Phantom Stock Award Agreement

A Singapore-law governed agreement granting employees the right to receive cash payments based on company stock value without actual equity ownership.

find out more

Equity Share Contract

A Singapore-law governed agreement facilitating the transfer of company shares between parties, including terms, conditions, and regulatory compliance requirements.

find out more

Equity Incentive Agreement

A Singapore-law agreement establishing terms for granting equity incentives to employees, including vesting schedules and exercise conditions.

find out more

Private Equity Shareholders Agreement

A Singapore law-governed agreement defining rights and obligations between private equity investors and shareholders, establishing governance and investment protection mechanisms.

find out more

Equity Repurchase Agreement

A Singapore law-governed agreement enabling a company to repurchase its own shares from existing shareholders.

find out more

Equity Buyout Agreement

A legally binding agreement under Singapore law for the purchase of equity shares in a company, detailing terms of transfer and regulatory compliance.

find out more

Private Equity Investment Agreement

A Singapore law-governed agreement establishing terms for private equity investment, including share subscription and investor rights.

find out more

Restricted Stock Unit Award Agreement

A Singapore law-governed agreement documenting the grant of Restricted Stock Units to employees, including vesting conditions and settlement terms.

find out more

Equity Pledge Agreement

A Singapore law agreement creating security over shares or equity interests, establishing pledgee rights and enforcement mechanisms.

find out more

Standby Equity Purchase Agreement

A Singapore-law governed agreement establishing an investor's commitment to purchase newly issued shares from a company on predetermined terms.

find out more

Restricted Stock Unit Agreement

A Singapore law-governed agreement outlining terms and conditions for granting restricted stock units to employees.

find out more

Restricted Stock Award Agreement

A Singapore law-governed agreement for awarding restricted company shares to employees, specifying vesting conditions and transfer restrictions.

find out more

Equity Commitment Agreement

A Singapore law-governed agreement documenting an investor's binding commitment to provide equity funding under specified terms and conditions.

find out more

Convertible Equity Agreement

A Singapore-law governed agreement allowing investment to be converted into equity shares at a future date.

find out more

Phantom Equity Agreement

A Singapore-law governed agreement establishing phantom equity rights that simulate share ownership benefits without actual share issuance.

find out more

Employee Equity Agreement

A Singapore-law governed agreement establishing terms for employee equity ownership, including shares or options grants and vesting conditions.

find out more

Standby Equity Distribution Agreement

A Singapore law-governed agreement providing companies with flexible, on-demand access to equity financing through share issuance.

find out more

Private Equity Agreement

A Singapore law-governed agreement establishing terms for private equity investment, including investment structure and governance rights.

find out more

Equity Participation Agreement

A Singapore law-governed agreement establishing terms for equity investment in a company, including share transfer and shareholder rights.

find out more

Equity Grant Agreement

A Singapore law-governed agreement documenting the terms of equity awards to employees, including vesting conditions and exercise rights.

find out more

Vested Equity Agreement

A Singapore-law governed agreement defining terms for gradual equity distribution to recipients with specific vesting conditions.

find out more

Private Equity Subscription Agreement

A Singapore law-governed agreement documenting terms and conditions for private equity investment through share subscription.

find out more

Equity Transfer Agreement

A Singapore law-governed agreement for the transfer of company shares between parties, including terms, conditions, and regulatory compliance requirements.

find out more

Equity Distribution Agreement

A Singapore-law governed agreement between an issuer and distributor for the systematic distribution of equity securities, regulated under Singapore's Securities and Futures Act.

find out more

Equity Contribution Agreement

A Singapore law-governed agreement defining terms for equity investment in exchange for company ownership.

find out more

Equity Buyback Agreement

A Singapore law agreement governing the repurchase of company shares from existing shareholders.

find out more

Limited Partnership Agreement Private Equity

A Singapore-law governed agreement establishing a private equity fund as a limited partnership, defining relationships between General Partner and Limited Partners.

find out more

Equity Ownership Agreement

A Singapore-law governed agreement establishing share ownership rights and obligations between company shareholders.

find out more

Equity Investment Agreement

A Singapore law-governed agreement detailing the terms and conditions for equity investment in a company, including share acquisition, investor rights, and governance provisions.

find out more

Employee Stock Options Agreement

A Singapore-law governed agreement establishing terms for employee stock options, including grant, vesting, and exercise conditions.

find out more

Download our whitepaper on the future of AI in Legal

By providing your email address you are consenting to our Privacy Notice.
Thank you for downloading our whitepaper. This should arrive in your inbox shortly. In the meantime, why not jump straight to a section that interests you here: /our-research
Oops! Something went wrong while submitting the form.

ұԾ’s Security Promise

Genie is the safest place to draft. Here’s how we prioritise your privacy and security.

Your documents are private:

We do not train on your data; ұԾ’s AI improves independently

All data stored on Genie is private to your organisation

Your documents are protected:

Your documents are protected by ultra-secure 256-bit encryption

Our bank-grade security infrastructure undergoes regular external audits

We are ISO27001 certified, so your data is secure

Organizational security

You retain IP ownership of your documents

You have full control over your data and who gets to see it

Innovation in privacy:

Genie partnered with the Computational Privacy Department at Imperial College London

Together, we ran a £1 million research project on privacy and anonymity in legal contracts

Want to know more?

Visit our for more details and real-time security updates.