Yes, minimum repayments are required every 30 day repayment period. Repayments are automatic, based on a fixed percentage of your sales, which count toward your minimum.
Even if you've met the minimum for the current payment period, we will continue to automatically collect repayments from a percentage of your sales.
If you don't reach the minimum with sales-based repayments by the end of the period, we automatically deduct the difference from your bank account.
For example:
Loan amount: $10,000
Capital Fee: $1,000
Total owed: $11,000
Minimum repayment every 30 days: $611.11
Repayment rate: 15%
Month 1: minimum repayment met by sales
Sales: $8,000
15% sales-based repayment: $1,200
No additional repayment required this period
Month 2: minimum repayment not met by sales
Sales: $1,000
15% sales-based repayment: $150
Automatic debit after end of repayment period: ($611.11-$150) = $461.11
All loans are issued by Celtic Bank, a Utah-Chartered Industrial Bank, Member FDIC. All loans and offers are subject to credit approval, identity verification, and are subject to periodic review and may change without notice.
Loans are governed by the Loan Agreement and Parafin’s Privacy Policy. Bank transfers are subject to review.