Vendor Finance
  • Overview
    • What is Vendor Finance?
    • Vendor Finance V2
      • Use Cases
      • Benefits
        • ✅Fixed Rates
        • ✅No Liquidations
        • ✅Fixed Terms
      • Definitions
      • How To's
        • Lender First Pool
          • Navigating the Create Pool Page
          • Navigating My Pools Page
          • Navigating the Borrow Page
      • Strategies
      • Protocol Fees/Pool Type
      • Developer Documentation
    • Vendor Finance V1
      • Use cases
      • Benefits
        • ✅No Liquidations
        • ✅Fixed Rates
        • ✅Fixed Terms
      • Definitions
      • Lend
        • ➕Adding Funds
        • ➖Withdraw Funds
        • 🤝Private Pools
        • ⚠️Token w/ No Oracle
        • 🔄Lender and Rollovers
      • Borrow
      • Repay Loan
      • Rollovers
        • 🔄Lender and Rollovers
        • 🔄Steps to rollover
        • 🔄Associated Fees
        • 🔄Lend Ratio Shifts
      • Defaults
      • Collect Payments
      • My Pools Page
    • Protocol Security
  • Links
    • Team
    • GitHub
    • Contracts
    • Branding
    • Discord
    • Medium
    • Twitter
Powered by GitBook
On this page
  1. Overview
  2. Vendor Finance V2
  3. Benefits

Fixed Rates

PreviousBenefitsNextNo Liquidations

Last updated 1 year ago

A is attractive to borrowers and lenders who don’t want their interest rates fluctuating over the term of their loans

The interest rate on a fixed-rate loan remains the same during the life of the loan for an individual borrower. Because the borrower's payments stay the same, it's easier to budget for the borrower and you are not exposed to fluctuating rates. As a lender you receive a predictable income and interest.

There is an ability by the lender to change the fee later on to make sure it is still appealing to borrowers. This change would not affect people whom borrowed prior to the rate change. Once you borrow, your interest rate is locked in to whatever you agreed upon at the time of transaction.

How to Calculate Fixed Interest Costs

Calculating fixed interest costs for a loan is relatively simple. You just need to know:

  • The loan amount

  • The interest rate

  • The loan repayment period

Example: Loan amount = $1,000; Term Interest Rate = 1%; One month time term $1,000 x 1% = $10 in interest owed for the one month term

✅
fixed interest rate