Home / Document templates / Convertible Promissory Note
Convertible Promissory Note
Free convertible promissory note template — startup debt that converts into equity in a future financing round.
- SSL-secured
- No signup required
- Free, always
This free convertible promissory note covers 1. Interest, 2. Maturity Date, 3. Automatic Conversion, 4. Optional Conversion, 5. No Interim Interest Payments with 9 clearly marked [placeholder] fields to fill in — built for small businesses and individuals documenting a loan or expense putting financial terms in writing so both sides have a clear, shared record. Copy it into your own word processor, fill in the placeholders, and review it — or adapt it — before use. It's part of docstoc's free document template library, alongside business, legal, real estate, finance, and HR templates. Every template here is free to copy with no signup required, and each one carries a plain disclaimer: this is a starting point for informational purposes, not a substitute for advice from a licensed professional in your jurisdiction.
Convertible Promissory Note
Company: [Company Name] Investor: [Investor Name] Principal Amount: [Amount] Date: [Date]
For value received, Company promises to pay Investor the Principal Amount, together with interest, subject to conversion as described below.
1. Interest
Interest accrues at [Rate]% per year, simple interest.
2. Maturity Date
Unless earlier converted, this Note is due on [Maturity Date].
3. Automatic Conversion
Upon a Qualified Financing (an equity round raising at least [Threshold Amount]), this Note automatically converts into the same securities sold in that round, at a price equal to the lesser of: (a) the round's price per share, or (b) the price implied by a valuation cap of [Amount] [and/or a discount of [%]].
4. Optional Conversion
[Optional: describe conversion terms if the Company is acquired or the Note matures without a Qualified Financing.]
5. No Interim Interest Payments
Interest accrues but is not paid in cash — it's added to principal for conversion purposes, unless the Note is repaid in cash at maturity.
6. Governing Law
This Note is governed by the laws of [State].
Company: ______________________ Date: ____________ Investor: ______________________ Date: ____________
*This document is provided for informational and educational purposes only and does not constitute legal advice. Convertible notes (and SAFEs, a related instrument) have real tax and securities-law implications — use a licensed startup/securities attorney rather than relying on a generic template for an actual fundraise.*
Edit directly in the box above. Download PDF anytime — the docstoc.io footer is always included and cannot be removed.
What's included
- Edit online — click the document, fill in placeholders, download a PDF
- 6 standard sections: 1. Interest, 2. Maturity Date, 3. Automatic Conversion, 4. Optional Conversion, 5. No Interim Interest Payments, 6. Governing Law
- 9 clearly marked [placeholder] fields for quick personalizing
- Free to use — no account or signup required
- Fully editable — adjust any clause to match your actual situation
- Includes a signature block, ready to print or sign digitally
- Fixed docstoc.io footer on every PDF (not removable)
Who this template is for
Freelancers & solo founders
Handling routine business paperwork without commissioning custom legal drafting for every document.
Small businesses
Standardizing recurring documents — leases, agreements, notices — across a growing operation.
Anyone reviewing before signing
Using a clear starting structure to understand what a document should cover, even if a lawyer finalizes it.
Informal lending & reimbursements
Money changing hands between people or a business and its team, without a bank's paperwork.
FAQ
Is this convertible promissory note template really free?
Yes. Like every template in docstoc's library, this convertible promissory note is free to use, with no account or signup needed to view, edit, or download it.
What does this convertible promissory note cover?
This finance template includes 1. Interest, 2. Maturity Date, 3. Automatic Conversion, 4. Optional Conversion. Fill in the [bracketed] placeholders, edit any clause online, then download a PDF — the docstoc.io footer stays on every export.
Is this legal advice?
No. This covers the standard structure, not the interest-rate limits, disclosure requirements, or tax implications that can apply depending on your state and the amount involved. Check those specifics with an accountant or financial attorney before you rely on it.
Can I edit the wording?
Yes. All 9 placeholder fields and every clause are editable right on the page — change what doesn't fit, then download an updated PDF anytime.
Where can I find more free templates like this?
Browse more free finance and related document templates in the docstoc library at /document-templates/.
More free document templates
Five products, one platform
Why use this instead of a generic template
Security
Served over SSL from Cloudflare's edge network — no ad trackers, no third-party scripts on template pages.
Legality
Templates are drafted for general use, not a substitute for legal advice — check the note on each page for specifics.
Privacy
No account or signup needed to copy a template — nothing you type here is stored unless you choose to sign up.
Speed
Copy the subject and body directly — no form to fill in, no export step, no waiting on a download link.
Mobile-friendly
Every template page works the same on a phone as a desktop — copy on the go, no app required.
API available
Building your own tool? docstoc's API covers invoices, reminders, and templates directly.