A debt instrument where an investor may be paid a set amount of interest on the initial investment every month for a set period of time. Unlike Revenue Share Notes, payments are fixed and not tied directly to revenue.
A Crowd Term Note is structured like your car payment or mortgage – businesses are required to make fixed monthly or quarterly payments. The stated interest rate indicates the annualized return a business has agreed to pay for your investment.
Debentures continue to have a risk of loss of principal, no payments of interest or principal or guaranteed.