How Our Platform Works
Safely Financing Income Share Agreements
Our platform’s primary purpose is to enable the safe financing of ISAs. This helps market participants transact in a transparent and fair environment.
1. Code Academy accepts 150 students into their 2020 coding course. Attending costs $20,000 and students have the option to use an ISA to finance their education.
2. 125 students sign ISAs to finance their education. After graduating, they will pay 17% of their income to Code Academy for 24 months. If their income is less than $50,000, their payments are temporarily paused. Their obligation ends after making 24 payments or meeting the $30,000 payment cap. Finally, after 5 years, regardless of how much they have paid, their obligations under the ISA end.
3. Code Academy comes to our platform to finance the cost of educating these students. Code Academy faces a timing mismatch between the current expense of educating students and future revenues that will only be realized over the next 2 – 5 years. To finance their current expenses, they can use our platform to pool the 125 signed ISAs and sell portions of this pool to ISA investors.