# Fixed Terms

Fixed terms help a borrower know exactly when their repayment will be required. In combination with a fixed interest rate they will know exactly how much they owe and when they owe it. 

Fixed terms help a lender know exactly when they will be paid. Again, in combination with a fixed interest rate the lender will know exactly how much they will be paid on that date. 

Having fixed terms allows a lender to create multiple terms and loan options. Having different dated loan terms would allow a borrower to [rollover](https://docs.vendor.finance/overview/vendor-finance-v1/definitions) to another term, therefor making the loan perpetual for how ever long the lender wants. 

{% hint style="info" %}
Example: There are 2 different loans terms created by the lender, one ending on Feb. 28th and the other ending on Mar. 31st.\
\
If the borrower was in the first loan term (Feb. 28th) they could then extend it to the next one (Mar. 31st), if they choose to. \
\
Rolling over is optional for the borrower and at the lenders discretion. 
{% endhint %}