# UK Convertible Note Template
A Convertible Note is a debt instrument used by startups and investors in the UK to secure funding while delaying valuation until a later equity round. It’s a flexible and efficient way to raise capital, providing both parties with protection and clear terms.
Why Use Signova AI?
- Fast turnaround: Generate a fully customised Convertible Note in minutes, not days.
- UK-compliant: Drafted to meet current UK company law and investment regulations.
- No lawyer needed: AI-driven drafting eliminates the need for costly legal consultations.
- E-signature included: Complete and execute your Convertible Note digitally for immediate use.
- Principal and Interest: Defines the loan amount and applicable interest rate under UK standards.
- Conversion Terms: Details when and how the loan converts into equity, including valuation caps and discounts.
- Maturity Date: Specifies the date when the note either converts or must be repaid.
- Events of Default: Conditions under which the lender can demand repayment or take action.
- Governing Law: Confirms the document is governed by English law to ensure enforceability.
- Investor Protections: Includes clauses on information rights and transfer restrictions tailored for UK startups.
- Answer questions: Provide key information about your investment and company.
- AI generates: Our AI drafts a bespoke UK Convertible Note based on your inputs.
- Download & sign: Review, download, and execute your document with integrated e-signatures.
Key Clauses Included
How It Works
Frequently Asked Questions
Q: Can a Convertible Note be used with any UK company?
A: Yes, it is suitable for UK private limited companies looking to raise early-stage funding.
Q: What happens if the company never raises an equity round?
A: The note typically matures on a set date, after which the loan must be repaid or renegotiated.
Q: Is a lawyer required to enforce a Convertible Note in the UK?
A: No, the note is legally binding under English law, but consulting a lawyer for complex cases is advisable.
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