A convertible note document is a written agreement that records the issuing of debt, usually in the form of a loan or investment, which can be converted into equity at the holder’s discretion. It is an attractive option for those who want to invest in an early-stage company without committing to any equity stake. The note sets out the terms of the agreement between issuer and holder, including the amount borrowed, interest rate (if applicable), conversion ratio, and any other special conditions. By signing the note, both parties agree to the terms laid out in the document and commit to honor their end of the bargain. Convertible notes are a useful way to bridge the gap between initial investments and later rounds of funding.