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But what happens if (especially in this environment) you can't raise money? Are you now legally on the hook to repay the loan?
by aditya 18y ago
But what happens if (especially in this environment) you can't raise money? Are you now legally on the hook to repay the loan?
- lincolnq 18y agoI would assume that if you go out of business, as creditors they get their money back first during asset liquidation. But you aren't personally on the hook. (Part of why it's a good idea to keep your business and personal finances separate!) Edit (think you were asking a different question) -- as I understand it, convertible bonds usually have a low interest rate and long duration, so you aren't supposed to feel like they need to be repaid immediately. If there's no future financing, but your business starts making money slowly, you'll eventually have to repay it, yeah.