Laura Boyle February 23, 2020 Promissory Note
Doing a foreclosure and repossession take between four and twenty five months, depending on the legal jurisdiction, and individual facts. This very long time-frame ends furthermore costs and expenses for productive moment collection efforts, and losing using money for as many as twenty five months-the opportunity costs of experiencing cash tied up unproductively.
A convertible note is that a debt instrument, like a bond which be substituted into equity (common stock) at a . The conversion feature is that the mechanism debt (the word ) will convert into equity (new for the investor) another event.
Because there are relatively few sellers and buyers for private notes the nation, also because they in different states, the happens at a much slower pace than happen on a centralized, market. there are few buyers, note sellers must dismiss the note to a buyer to purchase.
Convertible notes hybrids securities that offer some protections due -- in accountability and status if bankruptcy does occur, with a predictable income--and the upside in the equity does well. Exactly why are notes issued?