> For the complete documentation index, see [llms.txt](https://docs.techdollar.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.techdollar.com/loan-lifecycle.md). # Loan Lifecycle This page sets out how a Techdollar loan is structured between the borrower and the platform: how shares are pledged, who holds what, what stays in the borrower's name, and what changes at each stage of the loan. The design goal is simple. The borrower keeps ownership and upside throughout the life of the loan, and Techdollar holds enforceable rights it can act on only if the loan defaults. ## The borrower keeps the shares A Techdollar loan is secured, not a sale. When the loan funds, the pledged shares stay registered in the borrower's name. Techdollar takes a protected security interest in them, executed through traditional legal instruments. Nothing about the borrower's cap-table position, voting, or economic ownership changes at funding. Because no shares are sold, funding does not create a taxable event. The borrower retains the full upside on the entire position, including the portion pledged as collateral, and continues to participate in any future IPO or exit. ## The share charge The security interest is granted through a share charge executed at signing. Before any loan is issued, three things are verified by RSM, a top-ten national CPA firm: that the borrower legally owns the shares, that the share charge is enforceable, and that the underlying collateral agreements are sound. This verification is a condition of funding, not a post-closing step. The charge gives Techdollar the right to take transfer of the shares on a qualifying default, and only then. In the interim, the borrower holds and owns the equity, and Techdollar holds a documented, enforceable claim against it. ## Continuous valuation while the loan is live Throughout the term, Techdollar maintains a live mark on the pledged collateral. Rather than revaluing against the last funding round, the platform streams real-time NAV through its Caplight integration, drawing on observable secondary-market pricing and order activity. This serves two purposes: it keeps the collateral value current, and it gives continuous read on how a position of a given size could be absorbed if it ever needed to be sold. The borrower's shares are never tokenized; the mark is maintained off the secondary-market feed without moving the asset. ## Servicing and repayment The borrower services the loan monthly on the outstanding balance over the agreed term. Repayment falls due at the end of the tenor, between 6 and 18 months depending on the facility. There is no prepayment penalty, so a borrower can repay early and reduce total interest. A liquidity event is a convenient path to repay, not a condition of the loan. If the company goes public or is acquired during the term, the borrower can repay principal, accrued interest, and the close fee out of proceeds and keep everything above the loan obligation. If no liquidity event occurs, the loan is simply repaid at maturity like any other term facility. This distinction is load-bearing: the obligation is to repay at tenor, and the liquidity event is one way to do it, not the trigger for it. ## What happens at default A qualifying default transfers ownership of the pledged shares to Techdollar. This is the one event that moves the asset out of the borrower's name. From that point, Techdollar works the collateral through the secondary market, placing ask-side orders across multiple venues and direct buyers to recover the loan obligation, typically within days given the demand profile of the names underwritten. The borrower's downside is bounded by the pledged collateral and the terms of the loan agreement. The borrower has no claim on any recovery above the loan obligation, and Techdollar retains that spread. Conversely, until a default occurs, the borrower's ownership, upside, and control of the shares are fully intact. --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. 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