Our panel of carefully selected Specialist Finance Brokers are always here to support and assist you, offering a whole-of-market service. They can introduce you to investors and lenders with experience in Convertible Loan Notes (CLNs), sometimes with exclusive offers for our clients.
No matter what funding you are looking for, our specialist brokers are confident that, if they cannot find what you need, no one can. They can assist with:
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Raising funds via convertible loan notes
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Structuring investor-friendly terms
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Seed and growth-stage financing
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Angel and venture capital introductions
What Are Convertible Loan Notes?
A Convertible Loan Note (CLN) is a form of short to medium term debt financing that can convert into equity in the company at a later stage, usually during a subsequent funding round.
CLNs are commonly used by startups and growing businesses to:
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Raise funds without immediately diluting equity
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Secure financing with investor friendly terms
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Attract angel investors or venture capital
Investors benefit from potential upside through conversion to equity while receiving interest during the loan period.
How Convertible Loan Notes Work
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Loan Agreement – The investor provides funding to the business under agreed terms.
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Interest Accrual – Interest may accrue during the loan term, often convertible into shares.
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Conversion Trigger – Notes convert into equity during a future financing round, at a pre agreed discount or valuation cap.
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Optional Exit – Investors may receive repayment instead of conversion if specific terms are triggered.
CLNs provide flexibility for both investors and companies, reducing early-stage negotiation complexities.
Why Choose Convertible Loan Notes?
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Delays Equity Dilution – Investors convert later, protecting founders’ ownership.
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Flexible Terms – Interest, discount rates, and conversion triggers can be tailored.
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Attract Investors Quickly – CLNs are widely understood and accepted by angel investors.
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Suitable for Seed and Growth Rounds – Works for startups or expanding businesses.
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Simplified Documentation – Faster and lower cost than traditional equity rounds.
How SynergiseUK Helps
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Introductions to specialist brokers and investors experienced with CLNs
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Structuring convertible notes to meet both company and investor requirements
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Guidance on terms, discounts, caps, and conversion triggers
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Support for both UK and international fundraising rounds
Secure the Right Convertible Loan Note Funding
Whether raising funds, structuring your investment, or preparing for a growth round, SynergiseUK connects you with specialist brokers who can identify suitable convertible loan note solutions tailored to your business and investor needs.
Frequently asked Q&A's
A standard loan is repaid in cash, whereas a CLN can convert into equity at a future stage.
Yes, they are ideal for seed or early-stage fundraising.
Yes, CLNs may include clauses for repayment instead of equity conversion.
Often yes, which may also convert into shares alongside the principal.
We connect you to specialist brokers experienced in structuring and placing convertible loan notes.
Get in Touch
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