Loan Note
A loan note is a legal document that specifies the terms of a loan, such as the repayment schedule, interest rate, and any conditions. Loan notes are commonly issued in private financing arrangements, where lenders and borrowers agree on customized loan terms. They offer flexibility compared to traditional loans and are often used in venture capital or private equity as part of structured finance deals.
Key Takeaways
- Legal document outlining loan terms, including interest and repayment.
- Common in private financing arrangements.
- Provides flexibility compared to traditional loans.
- Used in structured finance deals in VC and PE.
