in ar·rears /əˈrirz/

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


Example : You transfer money to AlphaFlow on January 22nd and Alphaflow receives the funds on January 25th. AlphaFlow has you fully invested in 75 loans on February 1st. You begin accruing daily interest on those loans on February 1st, and receive your February earnings on March 31st.
  • January 22nd
    TRANSFER AUTHORIZATION

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

  • January 25th
    RECEIVED FUNDS

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

  • February 1st – 28th
    ACCRUAL

    AlphaFlow invests your funds across 75 loans, and you are owed 28 days of interest.

  • March 1st
    BORROWERS DEBITED

    Lenders debit borrowers to collect for February’s interest.

  • March 10th – 20th
    LENDERS PAY ALPHAFLOW

    Lenders distribute earnings to AlphaFlow.

  • March 31st
    PAYDAY

    AlphaFlow distributes earnings to investors on the last day of the month: you receive your 28 days of interest from February, 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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