So long as you have an Outstanding Balance, you’ll have to make Minimum Payments. Each Minimum Payment consists of:
Refer to your Line of Credit Agreement, or any amendments, for more details.
Mandatory Principal Contribution
Each Minimum Payment includes a contribution towards your principal balance to ensure you are always paying down your Line of Credit. The Mandatory Principal Contribution will vary depending on your income frequency.
Billing Cycle Charges
Billing Cycle Charges are calculated based on your Average Daily Principal Balance for each Billing Cycle. The Average Daily Principal Balance is determined by adding the daily principal balance for each day in the billing cycle and dividing that sum by the total number of days in that billing cycle. Please refer to the Billing Cycle Charge tables below.
Cost of Credit Example
To demonstrate what is included in each Minimum Payment, let’s look at the following examples for monthly and non-monthly income frequencies. We assume in these examples that there is a $1,500 draw at the start of the first billing cycle with only Minimum Payments made and no additional draws requested.