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
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      • 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
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  1. Overview
  2. Vendor Finance V2
  3. Benefits

Fixed Terms

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Last updated 1 year ago

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 to another term, therefor making the loan perpetual for how ever long the lender wants.

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.

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