The interest rate on the loan, is your ROI. This is reasonable because it's a very risky loan. > If shit hits the fan, they are entitled to the payout of up to

The interest rate on the loan, is your ROI. This is reasonable because it's a very risky loan. > If shit hits the fan, they are entitled to the payout of up to their original investment, so all of the company's assets, when liquidated, fund those proceeds. I thought all loans are structured that way? I am not sure why this should not be the case here.