What are Payouts?
Payouts refer to the distribution of funds, typically from a borrower to investors, as part of loan transactions. In the context of lending and investment platforms, payouts are the payments that are made to investors based on the income or returns generated from loans, investments, or other financial activities.
It is important for lenders to have control over when these funds are distributed to optimize cash flow and meet internal operational requirements. Platforms like Baseline enable lenders to control payouts to match them with their banking records, allowing for flexibility in aligning with borrower payment clearances, liquidity planning, and investor agreements. This control ensures operational accuracy and reduces the risk of misallocation or premature distribution.
These payments can include:
Interest payments: The periodic interest owed to investors based on the terms of a loan or investment.
Principal repayments: The return of the capital amount initially invested or loaned.
Other types of distributions: Such as fees, charges, or spread payments.
1. Accessing the Payouts Section
Navigate to the "Payouts" section.
You will see two tabs:
In Queue: Displays payments that have been received from borrowers but have not yet been distributed to investors.
Processed: Displays payments that have already been distributed.
2. Filters and Search
In both the "In Queue" and "Processed" tabs, you can filter results by:
Date
Type (e.g., interest, capital repayment)
Class (the class of the loan or investment)
Search: Use the search function to quickly find specific transactions.
You can also export the filtered data if needed.
3. Understanding the columns in "In Queue" and "Processed" Tabs
This tab shows payments that have been received but are pending distribution.
The table contains the following columns:
Date: The effective date when the payment was received.
Loan: The loan for which the payment was received.
Recipient: The investor(s) receiving the payment. Each investor will have a separate row for their portion of the payment.
Type: Indicates whether the payment is interest, capital, charges, or spread.
Class: Reflects the loan class in which the investor invested.
Amount: The amount to be distributed to the investor.
Status: Can be either:
Ready: The funds have been received and are ready to be distributed.
Clearing: The funds are pending confirmation from the bank (e.g., ACH or check clearance).
Paid Out: The funds have been distributed