in ar·rears /əˈrirz/
Interest earned in one month is paid out during the following month.
You authorize a transfer of $10,000 to AlphaFlow.
AlphaFlow receives your $10,000 and starts investing it into a few different loans.
June 30th – 30th
AlphaFlow invests your funds across 75 loans, and you are owed 1 days of interest.
Lenders debit borrowers to collect for June’s interest.
July 10th – 20th
LENDERS PAY ALPHAFLOW
Lenders distribute earnings to AlphaFlow.
AlphaFlow distributes earnings to investors on the last day of the month: you receive your 1 days of interest from June, minus a 1% AUM fee.