>>That sounds more like equity to me than a loan. It sounds like the principal and interest paid back is a fixed and predetermined value, rather than proportio

>>That sounds more like equity to me than a loan. It sounds like the principal and interest paid back is a fixed and predetermined value, rather than proportional to the company's revenue, which would make it a loan. The innovation here I believe is conditioning repayment obligations on the company having sufficient revenue. So in a sense it's like a loan contract with a clause allowing you to get a repayment holiday when your business is not earning enough. This, like all loans, has much less upside potential than equity.