Document background
The Convertible Promissory Note is a crucial financing instrument in the Swiss business landscape, particularly for startups and growing companies seeking flexible funding options. This document is typically used in bridge financing scenarios, where companies need immediate capital but prefer to defer equity valuation discussions to a future date. Under Swiss law, the note must comply with the Swiss Code of Obligations' requirements for both debt instruments and potential equity conversion. The document includes essential terms such as principal amount, interest rate, maturity date, conversion triggers, and price mechanisms, while also addressing specific Swiss legal requirements for securities and corporate governance. It's commonly used between funding rounds or when companies need quick access to capital without the complexity of a full equity financing round.
