Convertible loans can be simple and effective.  It is a normal loan where the company does not repay the borrowed amount when the term expires. Instead, it converts into company shares.  Commonly used by investors to advance cash to start-up businesses and by owners to plough additional capital into their own companies, convertible loans are technically a combination of both equity and debt. But what happens when the business struggles and the loan is not repaid?  When an investor loses money on a traditional investment, they can offset the capital loss against their tax bill. However, what happens if a…

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