Pima Arizona Angel Fund Promissory Note Term Sheet

• Category: Small Business - Investment or Funding
• State: Multi-State
• County: Pima
• Control #: US-ENTREP-004-2
• 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 Lima Arizona Angel Fund Promissory Note Term Sheet is a vital document that outlines the terms and conditions of the financial agreement between the Lima Arizona Angel Fund and the borrower. This term sheet acts as a precursor to the promissory note and holds significant importance for both parties involved in the transaction. The Lima Arizona Angel Fund Promissory Note Term Sheet comprehensively specifies various essential elements, such as the loan amount, interest rate, repayment period, and any additional terms agreed upon by the lender and borrower. It serves as a mutual understanding between the parties, ensuring a transparent and smooth lending process. The term sheet is tailored to meet the specific requirements of individual borrowers under the Lima Arizona Angel Fund, which may result in different types of term sheets based on the specific needs of the borrower. These variations could include term sheets for startups, real estate investments, small businesses, or other investment opportunities. Key elements of the Lima Arizona Angel Fund Promissory Note Term Sheet include the loan amount, which is the principal sum borrowed by the borrower. The interest rate, another crucial factor, determines the cost of borrowing and may be fixed or variable. The repayment period delineates the duration within which the borrower must repay the loan in full or in installments. Additional terms within the term sheet may involve any collateral required, personal guarantees, the priority of repayment, late payment penalties, and the rights and responsibilities of both parties in case of default or breach of agreement. In conclusion, the Lima Arizona Angel Fund Promissory Note Term Sheet is an essential document that consolidates the terms and conditions of the lending agreement between the borrower and the Lima Arizona Angel Fund. It ensures transparency, clarity, and a mutual understanding of the financial arrangements, benefiting both the lender and the borrower.