REPAYMENT PLAN

Repayment plan

Finance starts with one question: how and when will it be repaid?

Three ways to structure repayment.

1

Regular repayments

Each instalment repays part of the principal alongside interest. The schedule should match income from your business.

2

Principal at maturity

Principal is repaid at the end; interest is paid as agreed. You need to identify the source of funds for the final payment.

3

Interest-only period

During the agreed period you pay interest without reducing principal. Principal repayments then begin under the contract. An interest-only period postpones principal; it does not remove it.

Structure, term and costs are agreed for each transaction. This guide does not calculate instalments or constitute a finance offer.

Before completing a transaction.

Identify the source of funds: business cash flow, an asset sale or planned refinancing. Check the dates and what would happen if that exit were delayed.

Review outstanding principal, interest, fees and expenses. Real estate collateral does not replace a viable repayment plan.

You can start with a summary and an approximate schedule. Documents are optional at first contact.

A clearly defined exit.

When submitting your project, tell us what you expect to receive and when. Our team will review how the use of funds, collateral and repayments fit together.

More about terms and interest-only periods: Banco de España.

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