> ## Knowledge Base Index
> Fetch the complete knowledge base index at: https://helpdesk.evenfi.com/sitemap.xml
> Use this file to discover available pages before exploring further.
> Pure-Markdown content can be obtained by appending a '.md' suffix to the content URLs listed in the sitemap (without the trailing slash).

# Types of loan repayment

The following types of reimbursement will be discussed below:
1. BULLET;
2. FRENCH-STYLE AMORTISATION;
3. FRENCH-STYLE AMORTISATION WITH PRE-AMORTISATION;
4. ITALIAN-STYLE AMORTISATION
5. MULTIBULLET
6. AMORTISATION with BALLOON
7. DYNAMIC

**N.B.: loans called "amortising" on the platform assume French-style amortisation**.
****
# 1. BULLET REPAYMENT
For the duration of the loan (usually 12 months to 8 years) the borrower pays interest-only instalments.
The principal is repaid in full at maturity
ADVANTAGES:
- Allows access to immediate liquidity.
DISADVANTAGES
- It is very expensive for the borrower to repay.
### EXAMPLE OF BULLET REPAYMENT

- 10000€ capital loaned
- TAN= 5% monthly interest= 0.05/12=0.004167
- 12 monthly instalments
For the first 11 months €41.67 per month will be repaid (10000€ * 0.004167), at month number 12 €10000 (capital initially lent) + €41.47 will be repaid.
# 2. FRENCH-STYLE AMORTISATION
- The instalment (interest + capital) is constant over time.
- At the beginning of the loan, the instalments are made up of a higher interest rate, whereas towards the end of the loan the interest rate decreases and the principal rate increases.
- In short: the interest payments are decreasing, the capital payments are increasing.
### ADVANTAGES AND DISADVANTAGES FRENCH-STYLE AMORTISATION
- ADVANTAGES: The borrower knows exactly how much he has to pay in and the number of instalments.
- DISADVANTAGES: As time goes by, it becomes less and less worthwhile to pay off the debt early because the interest is all paid in the first few instalments.
### EXAMPLE OF FRENCH-STYLE AMORTISATION
- 10000€ capital loaned
- TAN= 5% monthly interest= 0.05/12=0.004167
- 12 monthly instalments
![](https://storage.crisp.chat/users/helpdesk/website/ff561a9ec0873800/screenshot-18_s9uz0s.jpg)
![](https://storage.crisp.chat/users/helpdesk/website/ff561a9ec0873800/amm-franc_pl1e03.jpg)
# 3. FRENCH-STYLE AMORTISATION WITH PRE-AMORTISATION
- During the pre-amortisation period, only the interest payments are made, so the outstanding debt remains unchanged.
- Once the grace period is over, refer to the classic French-style amortisation (discussed above).
### EXAMPLE OF FRENCH-STYLE AMORTISATION WITH PREAMORTISATION
- 10000€ capital loaned
- TAN= 5% monthly interest= 0.05/12=0.004167
- 12 monthly instalments
- Pre-amortisation of 2 months
![](https://storage.crisp.chat/users/helpdesk/website/ff561a9ec0873800/screenshot-23_1tfuh3z.jpg)
![](https://storage.crisp.chat/users/helpdesk/website/ff561a9ec0873800/amm-franc-con-pre-amm_6c70c2.jpg)
# 4. ITALIAN-STYLE AMORTISATION
- The capital portion is constant
- The interest linked to the outstanding debt varies and decreases over time; this implies that the instalment, unlike French amortisation, varies and decreases over time.
### EXAMPLE OF ITALIAN-STYLE AMORTISATION
- 10000€ loaned capital
- TAN= 5% monthly interest= 0.05/12=0.004167
- 12 monthly instalments
![](https://storage.crisp.chat/users/helpdesk/website/ff561a9ec0873800/screenshot-19_1d92twr.jpg)
![](https://storage.crisp.chat/users/helpdesk/website/ff561a9ec0873800/amm-ita_380ra.jpg)
# 5. MULTI-BULLET
-Interest paid monthly, calculated on the basis of the remaining capital. They are constant between each capital payment
-Capital share is constant and is paid out every X months.
### MULTI-BULLET EXAMPLE
- 100€ capital loaned
- TAN= 8% 
- 24 monthly installments
![](https://storage.crisp.chat/users/helpdesk/website/ff561a9ec0873800/image_comjsc.png)

# 6. AMORTISATION with BALLOON
In this type of project, a part of the capital is amortized monthly, during its duration, as in amortising type financing. 
The other part, as in classic bullet financing, will be repaid through an additional payment (**balloon**), which will occur at the **end** of the project.

# 7. DYNAMIC LOAN
As you can see, we have implemented the dynamic loan. The dynamism of this type of loan is due to three factors: 
1. the principal is repaid by the companies (borrowers) dynamically according to their turnover (no pre-determined repayment schedule); 
2. the only cost for the company (return for the investors) is a pre-determined fixed value (no annual interest rate) which is also paid dynamically as the principal is repaid; 
3. the dynamic loan has a final maturity where, if the monthly repayments have not been sufficient to repay capital + fees, the full amount due will be repaid by the financed company. 
The return for investors will therefore be **proportional** to the company's income: you will start from an agreed fixed minimum and this can be **increased** according to your performance. By how much? Here's the pleasant surprise: __the more promising the growth project we have chosen to invest in, the higher our return will be.

#8. COMPOSITE
Composite is a type of project that allows an annual or multi-year contract with periodic billing to be advanced by collecting it at one time. The company will then pay the installments at the scheduled collections.