Source: Waterfront Solicitors LLP via mondaq.com 31 August 2017
“Instead of going straight into an equity funding round (i.e. the issue of shares in exchange for funds) some companies initially raise money through a type of debt funding, known as convertible loan notes, in order to prove a concept, start trading or to stay afloat.
They are also used at later stages as bridging finance in order to keep a company trading in anticipation of a sale or listing.”
This mondaq article looks at first use, giving a summary of what convertible loan notes are, their advantages, disadvantages and common terms.