> For the complete documentation index, see [llms.txt](https://docs.qiro.fi/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.qiro.fi/products/qiro-marketplace/term-loans.md).

# Term Loans

**Term Loan Pools** represent a straightforward lending structure where the borrower agrees to repay the loan over a fixed term. This product mirrors traditional loan agreements where repayment obligations are clearly defined in advance.

In these pools, the loan is issued for a specific duration, and the repayment schedule — including when and how much is to be paid — is set upfront. The investor's cashflows are based on this schedule, providing **predictable and time-bound returns**.

These are best suited for lending use cases with a clear repayment horizon and minimal variability in cash inflows, such as corporate working capital loans, invoice financing, or inventory-backed lending.

**Key Features:**

* **Fixed Repayment Structure**\
  Borrowers repay over a defined period, and repayments can be structured in two formats:
  * **Bullet Repayment**: The borrower repays the entire principal in one go at the end of the loan term. Interest may be paid periodically or also at maturity.
  * **Amortised Repayment**: The principal is repaid in parts over time. The frequency (e.g., monthly, quarterly) and the start date of principal repayments can be configured at the pool level.
* **Investor Simplicity**\
  These pools are typically **uni-tranched**, meaning all investors share the same risk and return. Tranching can be enabled if needed but is not the default setup.
* **Support for Real-Life Scenarios**\
  The system automatically handles a variety of real-world events that may affect repayment and investor returns:
  * **Late Payments**: Tracked and included in the repayment flow.
  * **Prepayments**: Allows early principal repayments by the borrower.
  * **Write-Offs**: Supports partial or full write-offs in case of default.
  * **Recoveries**: Captures funds recovered post-default and allocates them fairly.


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