Convertible loans have the advantage that the loan amount can be transferred directly to the company’s business account. Compared to new shares, there is no need for a capital contribution account and no notary appointment. The advantage for the lender is that it is subordinate to the shareholders. If the company is dissolved, the lenders are entitled to repayment of their loan before the shareholders. However, exceptions prove the rule here too.
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Published at: 2024-02-05