in ar·rears /əˈrirz/

Interest earned in one month is paid out during the following month.


Example : You transfer money to AlphaFlow on March 20th and Alphaflow receives the funds on March 23rd. AlphaFlow has you fully invested in 75 loans on March 30th. You begin accruing daily interest on those loans on March 30th, and receive your March earnings on April 30th.
  • March 20th
    TRANSFER AUTHORIZATION

    You authorize a transfer of $10,000 to AlphaFlow.

  • March 23rd
    RECEIVED FUNDS

    AlphaFlow receives your $10,000 and starts investing it into a few different loans.

  • March 30th – 31st
    ACCRUAL

    AlphaFlow invests your funds across 75 loans, and you are owed 2 days of interest.

  • April 1st
    BORROWERS DEBITED

    Lenders debit borrowers to collect for March’s interest.

  • April 10th – 20th
    LENDERS PAY ALPHAFLOW

    Lenders distribute earnings to AlphaFlow.

  • April 30th
    PAYDAY

    AlphaFlow distributes earnings to investors on the last day of the month: you receive your 2 days of interest from March, minus a 1% AUM fee.

Note: this is an example to illustrate typical earning cycles, and may change based upon each individual lender.
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