Ok so the financial instrument to classify and measure is a debt instrument, the business model is to hold to collect and sell.
Based on an instrument-by-instrument basis
Financial assets with cash flows that are solely payments of principal and interest (SPPI) on the principal amount outstanding.
Interest is consideration for only the time-value of money and credit risk.
A more elaborate explanation and examples of assets likely/not likely to meet the SPPI test.
The question is: Are the payments solely payments of principal and interest?