Every term, in plain language

An individual or entity that meets income or net-worth thresholds set by a regulator, sometimes required to access certain offerings.

Interest that has built up on a debt since the last payment but has not yet been paid out.

Anti-Money Laundering — the checks and monitoring used to prevent illicit funds moving through the platform.

The gradual repayment of a debt through scheduled payments of principal and interest over time.

Annual Percentage Rate — the yearly interest rate charged or earned on a note, expressed as a percentage.

A single repayment of the full principal at the end of a note’s term, rather than in instalments.

The open period during which a business raises funds from investors toward its target on Afinvite.

An asset a business pledges to back a debt; it can be claimed by lenders if the business defaults.

The interest payment a note pays to its holder, usually on a fixed schedule.

A condition written into a debt agreement that the borrower must meet, such as maintaining a financial ratio.

A party owed money. On Afinvite, investors are creditors of the business that issued the note.

Money borrowed that must be repaid, usually with interest. Afinvite is a debt platform: you lend, you don’t buy equity.

Raising capital by borrowing — through notes — rather than by selling ownership in the business.

A formal obligation to repay borrowed money, such as a term note or revenue-sharing note.

The cash a business must pay to cover interest and principal on its debt over a period.

When a business fails to make repayments as agreed. Each listing carries a default-recovery plan.

The issuer’s documented plan for how investors are repaid if the business defaults or fails.

The independent review of a business’s financials, legal standing and use of funds before it can list.

The release of raised funds to a business once a campaign successfully closes.

Spreading investments across businesses, countries and instruments to reduce exposure to any single one.

The investigation Afinvite performs to verify a business before listing it to investors.

A regulated holding account where investor funds sit until a campaign’s conditions are met.

A note that pays a set interest rate over its term, giving predictable repayments.

A company that is properly registered and compliant with its jurisdiction’s requirements.

An agreed delay before a business must begin repaying investors after funds are disbursed.

A third party who agrees to repay a debt if the borrowing business cannot.

The cost of borrowing, paid by the business to investors, usually as a percentage of the principal.

The business that creates and offers a note to raise capital from investors.

Know Your Business — verification of a company’s identity, ownership and legitimacy.

Know Your Customer — verification of an investor’s identity to meet regulatory requirements.

A legal claim over an asset that secures a debt until the obligation is repaid.

How easily an investment can be converted to cash. Private notes are typically illiquid until maturity.

The date when a note’s term ends and the final repayment is due.

A debt instrument: you lend money to a business in exchange for repayment plus a return.

A one-time fee charged to a business for arranging and issuing its note.

The process of offering and allocating a note to investors during a campaign.

The original amount of money invested or lent, separate from any interest earned.

A formal document describing an offering, its terms and its risks for investors.

The timetable showing when and how much a business will repay to investors.

Renegotiating the terms of a debt — such as timing or rate — when a business cannot meet the original schedule.

A note repaid through an agreed share of a business’s revenue until a target return is reached.

The lowest relative risk on Afinvite: established, income-generating businesses with strong financials, collateral or track record. Lower expected return in exchange for greater stability.

Moderate risk: solid businesses with good fundamentals but some exposure — shorter track record, sector cyclicality or market concentration. Balanced risk and return.

Elevated risk: younger or fast-scaling businesses with thinner margins or less predictable revenue. Higher potential return, higher chance of delay or shortfall.

The highest relative risk Afinvite lists: early or volatile businesses where repayment is materially less certain. Only for investors comfortable with a real chance of loss of principal.

An A–D grade Afinvite assigns to each listing to signal relative risk, with methodology disclosed.

Checking parties against government watchlists to ensure they are permitted to transact.

A marketplace where existing notes can be bought or sold before maturity. Not always available.

A note backed by specific collateral, giving investors a claim on assets if the business defaults.

Debt repaid first in a default, ahead of subordinated or junior claims.

Evidence of where an investor’s money originates, required for AML compliance.

Junior debt repaid only after senior creditors are satisfied; higher risk, often higher return.

The ranking of claims in repayment; subordinated holders are paid after senior creditors in a default.

The return a revenue-sharing note aims to deliver to investors, expressed as a percentage or multiple.

The length of time until a debt must be fully repaid — the note’s term.

A note repaid with fixed interest over a defined period — predictable, scheduled repayments.

A summary of the key terms of an offering before full documents are issued.

Assessing and pricing the risk of an offering before it is made available to investors.

A note not backed by collateral; repayment depends on the business’s general ability to pay.

The business’s plan for how raised capital will be spent, disclosed to investors.

The income return on an investment, usually expressed as an annual percentage.