Topic Progress:

The Directors may wish to raise short term finance in the form of loans.

These funds could come from a number of sources:

  • Loans from a bank or other financial institution with interest rates which may vary over time or be fixed
  • Issuing Loan Notes to individuals or other Companies. The loan notes will typically have a fixed time period for repayment and a fixed interest rate

Any lender will want to understand the finances of the Company, the plans and its future financial prospects.