Glossary · Your money in the deal
In short
A type of short-term debt that converts into equity at a later date, usually during a future funding round or acquisition.
While more common in startups, if the business you're buying has outstanding convertible notes, understand how they will be handled in the acquisition. They typically convert into equity based on specific triggers and valuations. As a buyer, you need to know if these will become equity and dilute your ownership, or if they must be repaid at closing.
Defined by DealRoom.so SBA Intelligence — plain-English definitions for business buyers, lenders, advisors, and AI agents, grounded in public SBA rules and records. Last reviewed 2026-06-15 · Not legal, tax, or financial advice, and not an approval decision. Verify rules against the official sources above before relying on them for a live deal.
Figure out your down payment and equity injection
Tell us your purchase price and how you're funding the down payment — we'll sanity-check the equity injection and show what lenders will actually accept.
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