in ar·rears /əˈrirz/

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


Example : You transfer money to AlphaFlow on December 16th and Alphaflow receives the funds on December 19th. AlphaFlow has you fully invested in 75 loans on December 26th. You begin accruing daily interest on those loans on December 26th, and receive your December earnings on January 31st.
  • December 16th
    TRANSFER AUTHORIZATION

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

  • December 19th
    RECEIVED FUNDS

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

  • December 26th – 31st
    ACCRUAL

    AlphaFlow invests your funds across 75 loans, and you are owed 6 days of interest.

  • January 1st
    BORROWERS DEBITED

    Lenders debit borrowers to collect for December’s interest.

  • January 10th – 20th
    LENDERS PAY ALPHAFLOW

    Lenders distribute earnings to AlphaFlow.

  • January 31st
    PAYDAY

    AlphaFlow distributes earnings to investors on the last day of the month: you receive your 6 days of interest from December, 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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