Sentences with phrase «waterfall payment scheme»
To demonstrate how a waterfall payment scheme works, assume a company has taken loans from three creditors, Creditor A, Creditor B and Creditor C.
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In reality, some waterfall schemes are structured so minimum interest payments are made to all tiers during each payment cycle.
A waterfall payment is a type of payment scheme in which higher - tiered creditors receive interest and principal payments first, while the lower - tiered creditors receive interest and principal payments after the higher - tiered creditors are paid in full.