Your outstanding capital is the sum of your investment - capital repayments.
When a project is late on their repayment, we apply a provision to your outstanding capital.
What is outstanding capital?
Your outstanding capital in a loan is the capital that still needs to be repaid to you. It does not include interest. The outstanding capital is an important metric, because on October borrowers usually repay capital monthly. So, your outstanding capital decreases with every repayment. As a result, the outstanding capital indicates your exposure to a project, i.e. for how much you are still invested in a project.
Outstanding capital per loan
You can calculate your outstanding capital with the following formula:
Amount invested - capital repaid to you
It is important to separate your interest payments from your capital repayments. After all, interest payments do not affect the outstanding capital. On your Loans Page we have done this calculation for you. Your Loans Page shows a table and every project represents a line in this table. In the column outstanding you can see your outstanding amount per project in real-time. The Loans Page shows provisions as well, we cover those in the last paragraph of this tutorial.
You can also download all your repayments from Portfolio Summary. If you want to calculate your outstanding manually, you can sum all the capital repayments of a project and subtract them from your initial investment.
Outstanding capital of your portfolio
The outstanding capital of your portfolio is nothing more than the sum of your outstanding in all projects. It is displayed on your Portfolio Summary.
Provisions and losses
When a borrower falls behind on their repayments, we apply a provision to your outstanding capital in the related project. This provision increases the more a borrower falls behind, because it is an indication of the diminishing financial health of a project. To reflect this in the value of a loan and to prepare you for a potential loss, we apply a provision to the outstanding capital.
Provisions are not a loss and when a borrower starts repaying again, provisions are lifted.
Provisions reduce your outstanding capital per project and your total outstanding capital. When we show your outstanding capital on the platform, we show your outstanding capital after provisions. As a result, our calculation is:
Amount invested - capital repaid to you - provisions
Because the provisions are separated from the outstanding capital, you can calculate your outstanding capital without provisions quite easily by adding the amount of provisions to the outstanding capital.
For information on provisions, please read our dedicated tutorial about provisions and losses.
NB. on your Taxation Page we show your outstanding capital without applying provisions.