Glossary of Terms

An explanation of terms
Accrued Interest

This is interest that is estimated after third party platform fees, before losses and tax.

Amortising repayment

If a loan repays capital during its term.

Amount held

Total loan held as live on account.

Bullet repayment

 A payment that is made in a single, lump sum for the entire amount of the loan which is paid at maturity.

Capital deployed

Amount of your cash actively invested.

Cash in Bank

Amount of cash that is not yet invested.

Cash drag

The effect of un-invested cash on reducing overall returns.

Crystallised loss

Cash lost if a loan has defaulted.

Default

Loans which have stopped repayment (gone bad).

Gross return

Your total return on an investment before the deduction of any fees or expenses.
 

Liquidate funds

Sell (exit) an investment /loan position.

Loan purpose

Purpose of the underlying loan.

LTV - Loan to Value ratio

Loan to Value ratio is the ratio of loan value to underlying asset value. This is a risk assessment that lenders examine before approving a loan.

Net return

Your total return on investment after deducting all fees and expenses from the gross return (generated by investment).
 

Principal repaid

Amount of a cash repaid on loan.

Receivable amount

Amount of capital individually linked to an underlying loan. A receivable is a set of cash flows. Purchasing a receivable means that a buyer is able to access a set of cash flows from the seller of the receivable.
 

Recovery

Investments in the recovery process, which may or may not lead to a loss.

Secured loan

 Loan linked to an underlying asset, such as property.
 

Term

The term or length of a loan for example 3 months or 5 years.

Unsecured loan

Loan which is not linked to an underlying asset.
 

Write-off

When a loan in recovery has been concluded and there is a shortfall the balance is shown as a write-off.  In some cases recovery efforts continue and any subsequent payments received are credited back to the relevant holders.

Find out more

See further information on our Resource Hub about Direct Lending