What are they and how do they work?
A convertible loan note is simply a bond that can be converted into equity or shares in the issuing company at a pre-determined price.
Once the company has been listed on an exchange, the value of your shares is determined by the market, making it an attractive option for investors in start-up businesses with strong potential growth. It offers the best of both worlds, allowing investors to mitigate risk through a bond investment and enjoy annual interest payments, while also benefiting from any future stock market listing.
As with all of our investments, your capital is fully asset-backed, and you have first legal charge over the company’s assets, ensuring that your interests are ranked higher than any other parties.