When loan customers make a monthly repayment, the capital and interest they pay must be divided across many different investors due to how we diversify funds.
We divide all repayments into micro-pennies, to 8 decimal places, which allows for a greater level of accuracy and fairness overall.
To report whole pence to you, we must then round these micro-pennies up or down. We always round the ISA allowance down, to avoid any over funding which would cause all funds to be sent back.
Here’s an example of a micro-penny repayment:
A loan customer makes a repayment of £105 of capital and interest combined. The £105 must then be divided across 62 investors who all contributed to the loan (let’s assume each investor contributed the same amount of capital to the loan).
£105 / 62 = £1.6935483 per investor, which is credited to your account.
However, our reporting would round this down to £1.69 as the nearest whole pence.
Here’s an example of an ISA allowance discrepancy:
An investor has £1,000.499 in their ISA account.
In the dashboard, we report an ISA total of £ 1,000.50, and a remaining ISA allowance of £18,999.51.
This is because we round the ISA total down to £1,900.41 and subtract this from the original 2018/2019 allowance of £20,000.