A revenue-based loan is one that is repaid with a percentage of revenues made by the company instead of with a predetermined fixed monthly payment. Usually, a “holiday” is specified (e.g., 1 or 2 years) during which no interest accrues and no payments are due. After the holiday, a pre-determined percentage of revenues is paid to the lender as an interest payment.

This type of loan is not easy to model in the current release of Offtoa, but we are planning on implementing it in the future.

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