# 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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