A convertible loan is a loan that include a relative short-term interest rate period, based on a future investment within the company. With this type of loan, the lender is entitled to convert the loan to preferred stocks of the company under conditions that are set in advance by the two parties. Usually, the investor will not expect to gain from the interest rate, but from the stocks that will eventually convert into money.
What are “convertible loans”?
About the Author: Ifergan Dorin
Third year Law & Business (Minor- real estate), at the IDC Herzliya. her dream is to become a successful lawyer and businesswoman. In her spare time, dorin enjoy spending time with her family and friends, playing the guitar and dancing.