The entrepreneur decides about the interest rate for the convertible loan. Investors can decide if this is interest rate is interesting. In most cases the yearly interest rate is between 7 and 9%. The interest will be added to the amount you have invested and when you decide to convert your investment to shares, your invested amount + interest will be converted to shares in the business.
Articles in this section
- What are the rights of investors once they have a share in the business (A certificate in the STAK)?
- Via which legal structure will investors convert to shares in a business?
- When I want to invest in a business, can I decide if I want to invest via a convertible loan, or invest via straight equity?
- What happens when a business I have invested in does not reach the set goal amount for the crowdfunding campaign?
- What happens when at the end of the duration of the loan, no follow-up investor invested and hence no conversion moment occurred?
- As an investor in a convertible loan, can I decide whether or not to convert my investment to shares in the business?
- How is the interest rate for the convertible loan set?
- What is the duration of a convertible loan
- When will I receive interest on my investment in a convertible loan?
- How much interest will I receive when investing in a convertible loan?