How Our Platform Works
A Safe Market For Income Share Agreements
Our platform’s primary purpose is to create a safe market for ISAs. This enables market participants to transact in a fair and trustworthy environment.
1. Code Academy accepts 150 students into their 2020 coding course. Attending costs $30,000 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 sell their signed ISAs. 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.