A convertible loan note is a type of loan that can be converted into equity at a later date. This can be advantageous for a borrower who expects the value of their company to increase over time and who would like to convert their debt into equity. Convertible loan notes can also be advantageous for investors, as they can provide a higher return on investment than a traditional loan. Finally, convertible loan notes can be used to raise capital without giving up equity in the company. This can be helpful for companies that are not yet ready to dilute their ownership.
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