Equity loan
This term refers to the law of the country selected below.
This is a loan under which the borrower does not have to pay interest, but instead grants the lender a share in the profits of their business. Interest payments may also be agreed. This type of loan can be advantageous for both parties – the company in need of restructuring and the financing company. The company in need of restructuring can benefit above all from the exemption from interest payments and faces no additional burdens as long as no actual profits are generated. On the other hand, the financing company has the opportunity to gain a particular advantage through its share in what may be substantial future profits.
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