A start-up company without a credit history doesn’t have an established track record and therefore lacks credibility with conventional lenders such as banks. Therefore, most start-up companies prefer to raise fund from investors. In order to raise fund via equity, most start-up companies need to calculate their face value. But, at the beginning stage of companies, it is impossible to figure out and calculate the business value. So, the convertible debt notes were primarily created to help start-up companies raise fund.
Convertible debt known as convertible bond or convertible note is a way for a business to borrow money by entering into an agreement whereby it can repay the loan in shares of its own stock. With convertible debt, a business owner borrows money from a lender known as an early round private VC or angel investor. Both parties agree to enter an agreement to repay the loan by converting it into number of common shares in the future. The loan agreement outlines issuance date, maturity date, timeframe, the price per share for conversion and the interest rate will be paid. Thus, lenders prefer the convertible debt because the borrowers will pay the fixed rate of interest with option to convert it stock. If the lenders do not want to convert the bonds to equity, they will receive the convertible debt’s face value at the maturity date. However, if the lenders convert the bonds to company equity, the bond will possess only equity features instead of debt features.
On the other hands, the fast growth companies with lower credit score prefer issuing convertible debts once they believe that the business value will increase over years in the future. So, the equity dilution will be reduced in order to protect shareholders. For example. If the company A want to raise $10 million and its share value is worth only $10, it would have to sell their 1 million shares to meet the target. Via the help of convertible debt, they can wait until the company share is worth $100 per share and sell only 100,000 shares.
Sometimes we don't have the opportunity to choose and buy whole durians. Here’re tips you can test the packaged durians with the unfrozen variety.
Use your finger to lightly trace over the surface of the yellow flesh. If the durian flesh feels tender and soft, then it's ripe. If the durian flesh is hard to the touch, then that part of the fruit is unripe. If the durian flesh yields too quickly, it is too ripe.
Next, smell each of the pre-packed fruits and see if you can tell which one is ripe already. If its smell is raw, then it is probably not ripe. If its smell is over-powering and strong, it is likely overripe. It should smell somewhere in between raw and overpowering.
Here is a guide that can help you get the best durians in Singapore, make durian order online and deliver durians to your doorstep.
In Southeast Asia, local people eat durian with coconut milk and sticky rice.
If the durian is too ripe, it may be pungent or overly bitter. If the durian isn't ripe enough, the flesh will be hard and probably flavorless.