4+ Printable Sample Small Business Investment Agreement Templates

Tips to Make Small Business Investment Agreement Templates

Some businesses are owned privately but some others intend to sell shares to private investors. In this case, you will need small business investment agreement templates. This agreement outlines the terms & conditions that are set for the sale & works. It aims to protect both company and investor.

Busines Investment Agreement Template


How to Write a Small Business Investment Agreement Template

If you want to write a small business investment agreement, you will have to know about its basic structure. Typically, there are some elements that you will need to provide in this agreement. So, make sure that you do not miss any of them. For the detailed elements, let’s see the following explanation.

investment agreement

First of all, you should identify both parties. The involved parties include the company & the investor. In this section, you have to state the name of each party. After that, you can continue with the address of each party. If needed, you can also add their contact information like phone number, email, etc.

The second section is for the exact amount of money that is invested. Besides that, the goal of the investment should also be explained. Then, you will also need to explain how the investment will be used or operated. One more, it must be clear what the investor will get in return to put their money.

For the third section of the agreement, it should be for the payment terms. The terms of payment may include the method of payment as well as when the payment is going to be made. The payment can be in a single lump sum or alternatively is divided in multiple payments with the scheduled payment.

In writing a small business investment contract template, it is also very important to include deliverables. You will need to add it if there are some specific dates / goods as well as services that will be developed. Besides that, you must state & explain when they will be due as clear as possible.

The final section, you will have to include the terms of the investment agreement. It relates to many things. One of them is about how long it will be valid for. It includes the return of investment given as well as how the process of terminating agreement. Here, the options must be listed down completely.

Additional Features of a Small Business Investment Agreement Template

Sometimes, there are some additional features needed. For example, it needs to specify the ownership percentage agreed with investor, time frame, provision for dilution, & also an outline of the obligations of each party in clear terms, arbitration, settlement procedures, causes of termination, & anything else.

Investor Agreement investor contract Scottish Investment Agreement - Small Business Investment Agreement

When everything is clear & complete, the small business investment agreement templates have to be signed off. In signing it, both parties need to testify & make sure that both of them are authorized to enter into the contract & are legally as well as financially capable of investing money in that business template.

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