A convertible loan is where the investor provides a loan with a maturity date, interest and the right to convert the loan into an equity stake in the company (not relevant to many third sector organisations).
Terms you can find in a convertible loan
- Maturity date: The time by which the loan matures. The investor can require the repayment of the loan and interest at the maturity date.
- Interest rate: This is the interest the borrower pays on the loan. It is usual that the interest gets accrued on to the A sum of money lent or invested, on which interest is paid or earned (or the balance of a loan, net of interest and amounts repaid). of the loan.