Production Payment

Production payment financing
A method of nonrecourse asset-based financing in which a specified percentage of revenue realized from the sale of the project's output is used to pay debt service. ...

Production Payment: A defined portion of the proceeds of production up to a capped amount. The amount that is required to repay a loan with interest and fees.

Volumetric Production Payment - VPP
A type of structured investment that involves the owner of an oil and gas interest selling a specific volume production in that field or property.

For an exception in the case of certain mineral production payments, see section 636 and the regulations there under.

Commodity-linked financing
Inventory Monetization
Contract Monetization
Volumetric Production Payments
Muni-Bond Prepays ...

An agreement by the loan purchaser to allow a monthly loan quota to be delivered in batches.
Production payment financing ...

See also: Recourse, Debt service, Asset-based financing, Expense, Banks