An unsecured loan from investors to the company that converts into shares at a discount or capped price on the next funding round.
Raising investment
Convertible Loan Agreement
About this document
A convertible loan agreement (CLA) lets investors lend money to the company now. The loan normally converts into shares at the next priced funding round, at a discount to the round price or at a capped valuation. If there is an exit or no round by the maturity date, the lenders can choose repayment or conversion.
The document is laid out in the sections below. Each one comes with a plain-English guidance note explaining what it does and what to change.
Our templates are professionally structured starting points for UK businesses, not legal advice. For anything complex, unusual or high-value, have your final version checked by a solicitor.
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Raising investment
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Editable Microsoft Word files
Guidance notes in every document
Written for UK businesses
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