What is Convertible Debt/Note?

Convertible debt (aka convertible notes) is a type of bond that the holder can convert into a specified number of shares of common stock in the issuing company or cash of equal value. Convertible debt allows startups to raise money while delaying valuation until the company is more mature.

We support three common methods for calculating interest:

• Per annum — calculates daily interest using the actual number of days in the year

• Actual/360 — calculates daily interest using a 360-day year

• Actual/365 — calculates daily interest using a 365-day year