Home
Forms Library
Convertible note template word

Convertible note agreement 2025

convertible note template word Preview on Page 1

See details

4.4 out of 5

49 votes

The document is a Convertible Promissory Note issued by a corporation, detailing the terms under which the corporation promises to pay a specified principal amount plus interest to a lender. It outlines conditions for maturity, interest rates, payment procedures, conversion into shares of common stock, security interests, subordination to senior indebtedness, registration rights for shares upon conversion, and restrictions on transfer. The note emphasizes that it has not been registered under securities laws and includes provisions for amendments and cancellation.

Here's how it works

01. Edit your convertible note template word online

Type text, add images, blackout confidential details, add comments, highlights and more.

02. Sign it in a few clicks

Draw your signature, type it, upload its image, or use your mobile device as a signature pad.

03. Share your form with others

Send convertible note template via email, link, or fax. You can also download it, export it or print it out.

How to use or fill out convertible note agreement with our platform

Ease of Setup

DocHub User Ratings on G2

Ease of Use

DocHub User Ratings on G2

Click ‘Get Form’ to open the convertible note agreement in the editor.
Begin by entering the name of the corporation and the dollar amount of the note in the designated fields. Ensure accuracy as these details are crucial for legal validity.
Fill in the date of the note, along with the city and state where it is issued. This information helps establish jurisdiction.
Complete the section detailing the lender's name and address. This identifies who will receive payment under this agreement.
Specify the maturity date when all principal and interest must be paid. This is critical for both parties to understand their obligations.
Input interest rate details, including any applicable margins. Make sure to clarify how interest will be calculated over time.
Review sections on conversion rights and procedures carefully, ensuring you understand how and when conversions can occur.
Finally, ensure all signatures are collected from authorized representatives before finalizing your document.

Start using our platform today to streamline your convertible note agreement process for free!

be ready to get more

Complete this form in 5 minutes or less

Get form

Got questions?

We have answers to the most popular questions from our customers. If you can't find an answer to your question, please contact us.

What is the convertible note deal?

When a startup issues a convertible note, the investor provides funding in exchange for a promissory note, which outlines the terms of the investment. The note typically includes details such as the principal amount, interest rate, maturity date, conversion terms, and other relevant provisions.

What is a convertible note and how does it work?

Convertible Note Meaning: A Hybrid of Debt and Equity. What is a convertible note? In short, a convertible note is originally structured as a debt investment but has a provision that allows the principal plus accrued interest to convert into an equity investment at a later date.

Why do companies offer convertible notes?

Companies issue convertibles to lower their borrowing costs. Its quite another matter to sell those securities to the investing public. Convertible securities came into being to make securities more attractive to the investing public.

What are the disadvantages of a convertible note?

The following are just a couple of the possible disadvantages of using convertible notes as a financing mechanism. If they dont convert, the notes eventually come due. This can result in the end of the startup if the note holders arent willing to negotiate, and the startup doesnt have the means to pay off the notes.

Are convertible notes a good thing?

Convertible notes are great when its hard to judge the valuation of a company now, but you will be able to later, it also keeps equity control of the company with the owner and avoid a lot of really complicated financial and legal process of issuing shares.

simple convertible note template

Convertible note agreement template Convertible Note Agreement pdf Convertible note example Convertible Note example PDF Convertible note template word Convertible note vs SAFE Simple convertible note template Convertible note template ycombinator

Related forms

be ready to get more

Complete this form in 5 minutes or less

Get form

What is the meaning of convertible note agreement?

What Is a Convertible Note? A convertible note is a short-term debt agreement that converts into equity at a future date. Usually, this happens when one of these events takes place: ▪ The company raises enough capital to reach a pre-determined benchmark.

Do convertible notes get paid back?

As debt instruments, convertible notes come with an interest rate and a maturity date (when the note expires). If the note hasnt already converted into equity by the maturity date, the company typically is required to repay the noteholders principal investment plus interest.

Convertible note agreement 2025

Here's how it works

How to use or fill out convertible note agreement with our platform

Complete this form in 5 minutes or less

Got questions?

What is the convertible note deal?

What is a convertible note and how does it work?

Why do companies offer convertible notes?

What are the disadvantages of a convertible note?

Are convertible notes a good thing?

Complete this form in 5 minutes or less

People also ask

What is the meaning of convertible note agreement?

Do convertible notes get paid back?

convertible note agreement template

Try more PDF tools