- All payments will be collected on the first of the month and the investor interest payments will be issued on the 16th of the month, or the first business day following the 16th. Once payment is posted, there is a 3 day clearing window to make sure there are no failed transactions. ACH transactions can 'fail' for up to 60 days.
- All borrower monthly payments are interest only calculated on an annualized basis on the entire principal balance.
- The principal investment and remaining interest amount will be disbursed to our investors upon repayment of the loan.
- In the event of default, insufficient funds, or other unforeseen issues, the collection timeline may be extended.
- Regular loan updates will be provided to our investors to keep you up-to-date on any missed, delayed, or successful payments.
- The loan term options will remain 3, 6, 9, and 12 months.
- When a payment is received, the loan will reflect the payment in the investor loan dashboard. Please note that a Transaction ID will be provided for tracking purposes
To help identify the different loan types, on the funding page we have added a few new indicators.
There is now a column called “Payment Type”, which will show as monthly or deferred; monthly refers to monthly payment loans and deferred refers to maturity date repayment (balloon payment loan). When you click into the loan, the repayment terms box will indicate whether the loan is deferred payment or monthly payment.
On the investor dashboard, the loan type is shown in the drop-down menu after you expand the loan information.
How investors get paid:
- If you invest within two days of a borrower’s monthly interest payment, you will not get an interest payout until following month.
- You do not get interest payments until the loan is fully funded. So, if you invest in a loan 30 days prior to the loan fully funding, you will not get interest payments until after the loans funds and the borrower makes a monthly payment. Please note that you will still accrue interest for the 30 days, but it will not be paid to you until after the first monthly payment is made by the borrower. Example: You invest in the loan on August 12th, but the loan is not fully funded until October 3rd. Your first monthly interest payment will be paid on November 16th; however, you will be paid interest based on your August 12th investment date.
- Small interest payments (below a penny) will be rolled over until a full penny of interest has accrued. Once that penny has accrued, it will be disbursed.