I’ve written before about how I like my role as CFO at Lightyear, because I really get to contribute in creating value. To innovate. Recently, our finance team had the pleasure of adding to Lightyear’s innovations by introducing the option to reserve a Lightyear One, via a convertible loan. In this article I’d like to explain to you what a convertible loan is, what’s in it for you and why I think it fits so well with Lightyear’s values and our customers.
Our future customers are pioneers who believe in our product, company, team and mission. So much in fact, that they want to buy a Lightyear One. After they’ve made a downpayment, they’ll be waiting for their car to be produced. Anticipating how it will feel to drive on solar energy. Meanwhile, Lightyear will grow in value. Meaning their money would have grown, had they invested it in the company Lightyear, not the car Lightyear One. To us, this seemed off.
Considering our clients are often bold, independent thinkers and more often than not: investors and entrepreneurs. We wanted to offer them a way beyond the classic ‘reserve your car now’ that offered the same benefits of investing, while buying a car. A way to reward them for their trust in our company and capabilities. And that’s how we got the idea to combine a pre-order with a convertible loan.
With a convertible loan, your payment for the car functions (like the name suggests) as a loan to the company. And one with an interest rate that’s rather generous: 8%. This means your money won’t sit idle while you wait for your car to be produced. In fact: the longer the wait, the higher the reward. As soon as your car is ready you’ll be able to collect your new wheels and the interest on your loan. Making it a rather good day to look forward to. For those wondering if you can switch from buying the car to investing in Lightyear: you can. In fact, you’d get a discounted rate on the shares you buy. Now, as you’d expect: terms apply, so don’t be afraid to ask about them, we’ll happily talk you through them.
For now I want to focus back on that day you collect your new and innovative solar vehicle, and innovative earnings. To me, it shows that within a company, you can be innovative on every level. Together we work on groundbreaking innovations and with this new reservation form based on a convertible loan, we’re able to literally give back to those who support us. Which, I have to admit, feels pretty awesome.