Formula
Rolled Interest
GF = Advances + Arr. Fee + Exit Fee + Compound Interest
Retained Interest
GF = Advances + Arr. Fee + Exit Fee | Net Advance = Advances − Reserve
Advances plus arrangement fee, exit fee, and rolled interest equals gross facility.
Advances + Arr. Fee + Exit Fee + Rolled Interest
= Gross Facility (total lender exposure)
Frequently Asked Questions
How does interest treatment change gross facility?
For rolled interest: gross facility = advances + arr. fee + exit fee + compound rolled interest. For retained: gross facility = advances + arr. fee + exit fee. Retained structures produce a lower gross facility but reduce the net advance.
What is the repayment obligation?
The repayment obligation is the total amount due at exit. For rolled interest, it equals the gross facility (which includes all rolled interest). For retained, it also equals the gross facility, since the retained reserve was already deducted from the advance.
Why does gross facility matter for LTGDV?
LTGDV is calculated as gross facility ÷ GDV. A higher gross facility — from higher fees, longer terms, or rolled interest — increases LTGDV even if the loan amount stays constant.