Payouts are created through a multi-step process that begins when a borrower makes a payment and ends with distributing those funds to the appropriate investors.
Borrower Payment Received
The process starts when a borrower makes a payment on a loan. This payment can include:
Interest: Regular payments for the use of the borrowed funds.
Principal Repayment: Payments returning the original loan amount.
Fees or Charges: Any additional amounts, such as late fees, that might be included in the payment.
Inside a loan, when recording a payment, the payment box calculates distributions toward the investors that you may override as needed. The money assigned as part of this distribution creates the Payout transactions.
