Create a Loan - Payment Frequency and Interest Accrual

On the Payment Frequency and Interest Accrual page, you will specify how often you want your borrower to make a payment and the method you want to use for calculating interest:

Payment frequency is simply how often you want your borrower to pay you. Bryt has several options, including:

• Single Pay Period - Payment will occur once on a specified future date
• Daily - Payment occurs once a day (every day) starting from the specified closing date
• Weekly – Payment occurs every week on a specific day
• Every other week - Payment occurs every other week on a specific day
• Twice monthly – Payment occurs two times per month on specific dates
• Monthly – Payment occurs every month on a specific date
• Quarterly – Payment occurs every quarter (3 Months) on a specific date
• Semi-annually - Payment occurs twice a year on a specific date
• Annually – Payment occurs once a year on a specific date

Bryt uses the combination of Interest Day-Count and Per Diem (Daily Interest) to determine the Interest Accrual Method.

Interest Day-Count is how we calculate the number of days between two payment dates. The options for Interest Day-Count are:

• Periodic (same number of days in each period) – this method uses the same number for each period, even though the periods may vary. For example, with this option, Months are always counted as 30 days, regardless of the number of actual days in the month.
• Actual Days (counts the actual days in the payment period)
  • Note: When selecting Actual Days/365 for a Monthly payment frequency - there will be a prompt asking if you'd like to use a '366' calculation on leap years. 

Per Diem (Daily Interest) is the interest charged on a loan on a daily basis. This term is also referred to as the Daily Accrual. We use Per Diem (Daily Interest) to calculate prorated payments as well as the interest for a specific payment frequency.

For a more in-depth review of the technical components of Interest Accrual, please refer to the "Interest Accrual Methods" document.