Amortization

Straight-line amortization

With straight-line amortization, the repayment occurs continuously during the loan's term, and the amortization amount is constant. Since the debt decreases over time, the interest costs will also decrease, which means that the amount for each repayment on your business loan decreases during the loan's term.

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Annuity

Annuity loans also have ongoing repayments, but with an annuity, the amount for each repayment is constant throughout the loan's term. In contrast to straight-line amortization, the interest portion is higher at the beginning of the loan and then decreases over time, while the actual repayment increases.

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Interest-only

Unlike straight-line amortization and annuity, you do not make ongoing repayments on an interest-only loan; instead, you only pay interest during the loan's term. The loan is then repaid in full at the end of the term. If you wish, you can make repayments on an interest-only loan during its term to reduce the debt and thereby lower the interest costs.

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What types of repayments does Froda offer?

Froda's business loan is an annuity loan with ongoing repayments for up to 60 months. Therefore, you pay a fixed sum that is constant for each repayment during the loan's repayment period, and you can repay all or part of the loan at any time without any extra cost. If you want to adjust the size of the payments, you can easily do so by making an extra payment or by adjusting the term of your business loan. You can also pause the repayment for up to 6 months, as often as you like.

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