Reimbursements

Introduction

A reimbursement describes an amount of money transferred from a project's wallet to a lender's wallet. This amount represents a portion of the amount owed by the borrower to a lender with interests.

Reimbursement calculation

For reimbursement calculation, we use two method : Infine & Linear. Both method are explained in below section. Once the reimbursement is calculated, reimbursement data is stored in three different collections.

Reimbursement plan

In reimbursement plan, we store reimbursement information for every project. It stores a summary of reimbursement.

Column	DataType	Description
_id	ObjectId	Primary key of the collection
total	Integer	Total amount of respective project need to reimburse
totalAmortization	Integer	Total amount of amortization of respective project need to reimburse
totalInterest	Integer	Total amount of Interest of respective project need to reimburse
reimbursementTerms	Array	Reimbursement Terms associated with this Reimbursement Plan
paid	Boolean	Determines whether the reimbursement plan is complete
projectId	ObjectId	Project associated with reimbursement
createdAt	datetime	Created date and time
updatedAt	datetime	Updated date and time

Reimbursement term

In reimbursement terms, we store reimbursement information for every project for specific term. It stores a summary of reimbursement for a specific term.

Column	DataType	Description
_id	ObjectId	Primary key of the collection
totalReimbursementTerm	Integer	Total amount of respective project need to reimburse for that term
totalReimbursementTermAmortization	Integer	Total amount of amortization of respective project need to reimburse for that term
totalReimbursementTermInterest	Integer	Total amount of Interest of respective project need to reimburse for that term
reimbursements	Array	Reimbursement associated with this Reimbursement Term
paid	Boolean	Determines whether the reimbursement term is complete
executionAt	datetime	ideal date and time when reimbursement term should be triggered
projectId	ObjectId	Project associated with reimbursement term
createdAt	datetime	Created date and time
updatedAt	datetime	Updated date and time
reimbursedAt	datetime	Actual date and time when reimbursement was triggered

Reimbursement

In reimbursement , we store reimbursement information for every lender who has invested in a specific project.

Column	DataType	Description
_id	ObjectId	Primary key of the collection
title	String	Title of project
total	Integer	Total amount to be reimburse
amortization	Integer	Total amortization amount to be reimburse
interest	Integer	Total interest amount to be reimburse
incomeTax	Integer	Total income tax to be paid
socialTax	Integer	Total social tax to be paid
from	integer	Project wallet id
to	integer	Lender wallet id
paid	boolean	reimbursement payment status
taxPaid	boolean	tax payment status
contractUrl	String	Url where the investment contract is store
projectId	ObjectId	Project associated with reimbursement
userId	ObjectId	User associated with reimbursement
executionAt	datetime	ideal date and time when reimbursement should be triggered
investmentId	ObjectId	Investment associated with this reimbursement
createdAt	datetime	Created date and time
updatedAt	datetime	Updated date and time
reimbursedAt	datetime	Actual date and time when reimbursement was triggered
transactionId	Integer	Transaction id for payment between project wallet and user wallet
taxTransactionId	Integer	Transaction id for payment between project wallet and tax wallet

Reimbursement types

Early

INFO

Early reimbursement can only be done by the admin. To perform this action you need to follow the steps given below:

1. First login to admin panel.

2. Go to projects listing section.

3. Then follow these steps for finding the project for which you want to do early reimbursement.

TIP

You can only do early reimbursement for the projects whose status is SUCCESSFUL. So filter out projects based on SUCCESSFUL status.

1. Once you found the desired project, open the menu of actions.

2. Click on Reimbursement option.

1. A dialog with details of reimbursements will open, click on Early Reimbursement.

7. Now you will see confirmation dialog. Click on Yes to confirm the early reimbursement for the project.

Infine amortization

Infine amortization is applied when the borrower create a project with AMORTIZING BONDS i.e Bonds with infine reimbursement. In this amortization, borrower would be paying fixed interest to lender for n number of year where n is decide by borrower. On the last of payment, borrower would be payment the interest plus amortization amount.

TIP

Eg. Consider a lender investing Euro 1000 in Project A and Project A provides a rate of interest of 5% per year for 5 year.

Sr No	Date	Amortization	Interest	Total
1	2022-03-01	0	50	50
2	2023-03-01	0	50	50
3	2024-03-01	0	50	50
4	2025-03-01	0	50	50
5	2026-03-01	1000	50	1050

Linear amortization

Linear amortization is applied when the borrower create a project with CONSTANT ANNUITY i.e Bonds with constant annuity. In this amortization, borrower would be paying fixed interest to lender for n number of year where n is decide by borrower. On every reimbursement, borrower would return certain amount from amortization.

TIP

Eg. Consider a lender investing Euro 1000 in Project A and Project A provides a rate of interest of 5% per year for 5 year.

Sr No	Date	Amortization	Interest	Total
0	2022-03-01	180	50	230
1	2023-03-01	189	41	230
2	2024-03-01	198	32	230
3	2025-03-01	208	22	230
4	2026-03-01	225	11	236

Reimbursement cron

Refer this

Typology

TODO: complete docs (description, when it occurs, etc.)

Error handling

Whenever a reimbursement triggers there are multiple possibilities that fund transfer might fail. eg. Insufficient wallet balance, API unavailable etc.

These types of issue are handled by paid fails in every reimbursement plan, reimbursement term and reimbursement. So whenever a fund transfer fails, it handle in next cron where it is executed again.