What are the disadvantages of convertible loans for the company and for the lender?

In Switzerland in particular, convertible loans must be entered in the articles of association when they are converted into share capital. The name of the lender, the loan amount and the number of shares issued for 10 years are entered in the company’s public articles of association. For a privately held company, this makes it clear to outsiders how high the company valuation is. For the lender, this also has the disadvantage that it is publicly noted that he is a new shareholder of the company.

All FAQs Published at: 2024-02-05