Debt, credit & capital structure · Core
Convertible debt
Also called: convertible note
ELI5
Debt that may convert into equity under specified conditions.
Used in conversation
“The headline changes once we calculate convertible debt consistently.”
Pitch context
You will see “Convertible debt” in financial models, budgets, board packs and investor materials when the discussion reaches debt, credit & capital structure.
Why it matters: In debt, credit & capital structure, a loose definition can change rights, obligations, approval, disclosure or enforceability.
Caution
Meaning, enforceability and required process vary by jurisdiction and agreement; this definition is not legal advice.
Connected terms
- Convertible noteThe search label “convertible note” can route to both entries.
Need an investor or company deck?
Bring the business, the evidence or the half-formed ask. We help it travel beyond the spreadsheet.
See how pitch.dog can helpSources & evidence · 5
Direct term-level sources and supporting source families.
- IFRS Foundation — IFRS GlossaryDirect source · primary · checked 2026-08-16
- U.S. Securities and Exchange Commission — Small Business Capital Formation GlossaryDirect source · primary · checked 2026-08-16
- Financial Accounting Standards Board — FASB Accounting Standards CodificationSupporting source family · primary · checked 2026-08-16
- U.S. Small Business Administration — Break-even pointSupporting source family · primary · checked 2026-08-16
- U.S. Securities and Exchange Commission — Non-GAAP Financial Measures — Compliance and Disclosure InterpretationsSupporting source family · primary · checked 2026-08-16