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Repayments

When a borrower takes a loan through a pool, the repayment schedule defines how and when they repay the principal and interest. Our platform supports a Fixed Repayment Structure, where repayment terms are agreed upfront and remain consistent through the life of the loan.

There are two common formats:

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1. Bullet Repayment

In a bullet structure, the borrower repays the entire principal at the end of the loan term. Interest can be paid either:

  • Periodically (e.g., monthly or quarterly), or

  • Along with the principal at the end of the term

Best suited for: Short-term loans or situations where the borrower expects a lump-sum inflow later (e.g., invoice or trade receivables financing).

Example:

  • $100,000 loan for 12 months at 12% annual interest

  • Interest paid quarterly → $3,000 every 3 months

  • Principal repaid in full ($100,000) at the end of 12 months

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