Arizona Angel Fund Promissory Note Term Sheet

• Category: Small Business - Investment or Funding
• State: Multi-State
• Control #: US-ENTREP-004-1
• Format: Word; Rich Text

Description

An angel investor or angel (also known as a business angel or informal investor) is an affluent individual who provides capital for a business start-up, usually in exchange for convertible debt or ownership equity. New start-up companies often turn to the private equity market for seed money because the formal equity market is reluctant to fund risky undertakings. In addition to their willingness to invest in a start-up, angel investors may bring other assets to the partnership. They are often a source of encouragement; they may be mentors in how best to guide a new business through the start-up phase and they are often willing to do this while staying out of the day-to-day management of the business.
Term sheet is a non-binding agreement setting forth the basic terms and conditions under which an investment will be made.

The Arizona Angel Fund Promissory Note Term Sheet is a legal document that outlines the terms and conditions of a loan agreement between the Arizona Angel Fund and a borrower. This term sheet serves as a preliminary agreement and helps establish a framework for the loan. The purpose of the Arizona Angel Fund Promissory Note Term Sheet is to provide clarity and protect the interests of both parties involved in the lending process. It covers various aspects of the loan, including repayment terms, interest rates, collateral, and default provisions. The term sheet typically includes information such as the loan amount, interest rate, repayment schedule, and the duration of the loan. It may also outline any specific conditions or terms that the borrower must meet to receive the loan, such as providing financial statements or obtaining necessary permits. Additionally, the Arizona Angel Fund Promissory Note Term Sheet may specify the collateral that the borrower offers as security for the loan. Collateral can include assets like property, equipment, or accounts receivable that can be seized in the event of default. Different types of Arizona Angel Fund Promissory Note Term Sheets may exist depending on the specific needs of the borrower and the Arizona Angel Fund. For example, there may be variations in interest rates, repayment terms, or collateral requirements based on the nature of the loan or the borrower's creditworthiness. It is crucial for both parties to review the term sheet carefully and negotiate any necessary changes or additions before finalizing the loan agreement. Once both parties agree to the terms outlined in the term sheet, a formal promissory note is drafted, incorporating the agreed-upon terms, and a loan transaction can take place. In conclusion, the Arizona Angel Fund Promissory Note Term Sheet is a critical document that establishes the terms and conditions of a loan between the fund and a borrower. It outlines various aspects of the loan agreement and acts as a guiding framework for the lending process.