Do trust receipts have amortization schedules?

Trust receipts typically do not have amortization schedules. A trust receipt is a document used in
trade financing where the borrower (importer or buyer) receives goods from a supplier or
exporter but holds them in trust for the lender (usually a bank) until the loan is repaid. The trust
receipt serves as collateral for the loan.

Unlike traditional loans, trust receipts do not involve structured repayment schedules with
periodic amortization payments. Instead, the borrower is expected to sell or process the goods
and generate sufficient funds to repay the loan within a specified period, known as the trust
receipt period.

The repayment of a trust receipt loan usually occurs in a lump sum at the end of the trust receipt
period. The borrower is responsible for repaying the loan in full, including the principal amount
and any agreed-upon interest or fees. The specific terms and conditions of the trust receipt,
including the repayment period, interest rate, and repayment terms, are typically outlined in the
loan agreement between the borrower and the lender.

Therefore, while trust receipts involve repayment of the loan, they do not follow a predetermined
amortization schedule with regular installment payments like traditional loans. Instead, the
borrower is expected to repay the loan in a lump sum at the end of the trust receipt period.