Convertible loan
A loan that converts into shares at your next financing round, usually at a discount. Typical amount: typically €100k–3M (interest 5–10% (usually accruing) + conversion discount 10–25%).
Facts last verified 23.7.2026
A loan that converts into shares at your next financing round, usually at a discount. The standard way to bridge between rounds when agreeing a valuation now would be premature. Quick to close on standard documents.
Key facts
- Provider: Investors (angels, funds, existing owners)
- Type: Loan
- Typical amount: typically €100k–3M
- Rate / terms: interest 5–10% (usually accruing) + conversion discount 10–25%
- Legal basis: Market terms
- Who it is for: Micro to medium companies · R&D, international growth, starting up
How to apply
There is no application form here — this is a negotiation. Banks assess repayment ability and collateral: bring up-to-date financials, a cash-flow forecast, and a clear use of funds. Investors assess the growth story: bring evidence of traction and a defensible view of the market.
Competition works in your favour. Terms for loans, leasing, factoring and investment vary widely between providers, and a second offer is the strongest negotiating tool there is.
Public instruments often stack with market financing — a Finnvera guarantee can turn a bank's no into a yes, and a grant-funded project makes the investor case stronger.
Frequently asked questions
How much funding does Convertible loan provide?
Typical amount: typically €100k–3M. Support level / terms: interest 5–10% (usually accruing) + conversion discount 10–25%.
Who can apply for Convertible loan?
Provider: Investors (angels, funds, existing owners). Company size: micro, small, medium. Typical use: R&D, international growth, starting up.
On what legal basis is Convertible loan granted?
Market terms.
Indicative screening information, not advice. Amounts and rules change, so confirm the current terms and eligibility with the provider before you rely on them.
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