Create your convertible loan agreement for free
With our free tool you get a signature-ready convertible loan agreement to the GESSI standard in a few minutes — as a Word document (.docx) in German and English, no account needed.
Takes about five minutes. No login needed.
Convertible loan generator
How the generator works
You enter the key terms, the generator drafts the agreement. The result is a complete convertible loan agreement to the GESSI standard including supporting documents — in a few minutes, ready to sign.
Find your company
Search for your startup in the commercial register — company name, seat, register data and shareholders are taken over automatically. You only check and add what’s missing.
Set the terms
Loan amount, interest rate, term, discount and valuation cap: you enter the terms you agreed with your investor.
Download the agreement
You receive the agreement as a Word file (.docx) in German and English, plus the GESSI supporting documents. Signing happens outside the platform — the document is yours.
Standard agreements for startups
The agreements are based on the GESSI standard
GESSI stands for German Standards Setting Institute — a joint project of Business Angels Deutschland e. V. (BAND) and the German Startup Association. GESSI provides standard agreements for startups, business angels and investors: from convertible loans and financing rounds to employee participation. The texts are drafted in working groups that bring together experts and every stakeholder group — founders, angels and VCs.
The result is agreements that are as simple, technically consistent and balanced as possible. Those who know the GESSI standard agreements don’t need to renegotiate every clause — which shortens the path to signature considerably. In Germany they are widespread among startups and their investors and serve as a reference for fair terms.
beel’s convertible loan generator is based on the GESSI standard for convertible loan agreements. You get the agreement filled in with your terms — plus the GESSI supporting documents, such as the shareholder resolution approving the loan.
Basics
What is a convertible loan?
A convertible loan (German: Wandeldarlehen) is a loan an investor gives a startup — with the right or obligation to convert it into a stake in the company later. Instead of buying shares today, the business angel provides capital as a loan; conversion usually happens in the next financing round, when a new investor sets a valuation.
The advantage for both sides: the valuation question is deferred. The startup gets capital quickly; the investor receives terms that reward the early risk — typically a discount on the next round’s valuation and a valuation cap as an upper limit.
That is why the convertible loan is the most-used instrument for early rounds: pre-seed and seed startups bringing in business angels or friends & family, bridge financing until the next priced round — and teams that want to avoid a valuation discussion for now.
The advantages:
- Quick to close: usually no notary appointment at signing, short negotiation
- Valuation deferred: discount and valuation cap instead of a fixed pre-money valuation
- Flexible: every investor can sign individually and at their own time
- Market standard: angels and VCs know the GESSI terms
Suitable for:
- Pre-seed and seed startups before their first priced round
- Founders bringing in business angels or friends & family
- Bridge financing until the next priced round
- Teams that want to avoid a valuation discussion for now
Setting the terms
Valuation cap, discount and interest
A convertible loan has few but decisive levers. You agree these terms with your investor — the generator writes them into the agreement.
Loan amount
The sum the investor lends to the startup — one agreement per investor.
Interest rate
The loan bears interest until conversion. Accrued interest is usually converted as well. Single-digit annual rates are common.
Term
The latest date by which the loan converts or is repaid — often 24 to 36 months.
Discount
The reduction on the next financing round’s valuation at which the investor converts. 10 to 25 percent is common.
Valuation cap
The maximum valuation at which conversion takes place — protects the early investor if the next round is valued much higher.
Conversion trigger
What triggers conversion: usually the next qualified financing round above a certain size, alternatively the end of the term or an exit.
Calculating a convertible loan: an example
A business angel provides a €100,000 convertible loan with a 20 percent discount and a €4M valuation cap. The next round values the startup at €6M pre-money. With the discount, the conversion valuation would be €4.8M — but the cap applies at €4M. The investor therefore converts at €4M and receives around 2.4 percent instead of 1.6 percent without cap and discount. Interest is added on top.
After the convertible loan
The downside of convertible loans: bureaucracy afterwards
A convertible loan is quick to sign — the effort comes later: conversion means a capital increase with a notary appointment, many lenders get pooled through an SPV, and every shareholder resolution needs coordination. With Profit Participation Rights from beel that aftermath disappears — along with most of the cost for law firms and notary.
Convertible loans: After the investor closing, the bureaucracy begins.
with the next round
With beel Profit Participation Rights: No bureaucracy after the closing
Frequently asked questions
Is the convertible loan generator free?
Do I need an account?
Does it work for a UG as well?
What is the difference between a convertible loan and a convertible bond?
Does the generator replace a lawyer?
Do I need a notary for a convertible loan?
Is the convertible loan signed with beel?
Are Profit Participation Rights an alternative to a convertible loan?
Ready for your convertible loan?
Start the generator — or talk to the beel team first if you have questions about convertible loans, Profit Participation Rights or your financing round.