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 potentially enjoy annual fixed interest payments, while also benefiting from any future stock market listing.
Please be aware that your capital is at risk and returns are not guaranteed. Investments are not covered by the FSCS and security measures are not a guarantee of repayment.