Happen Bank issues and services loans and collects principal and interest payments from members. Generally, we distribute collected payments, less the 1% service fee, to investors who hold corresponding Notes.
When borrowers make payments, Happen Bank transfers the applicable portion to investor accounts within one business day.
The reduced payment transfer period means you’re paid faster, but you may also see a “reverse payment” transaction reflecting failed payments from members, which could result in a negative cash balance in some circumstances.
For example, if you have a low cash balance in your investor account and a member’s payment on one of your Notes is reversed, you could show a negative account balance up to the amount of the reversed loan payment. You’ll continue to show a negative account balance until you receive another member payment to your Notes that covers the difference.
