How to extend or work out a private loan without losing its history

Never edit the past to describe the present

The current terms matter. The terms that produced last month's invoice still matter too. Every change to a loan is a dated event with an effective date and a before/after pair — not an edit that overwrites the prior state. The moment you type the new rate over the old one, you lose the ability to explain the invoice you already sent.

Effective date and before/after terms

Preview both sides before committing, because the effective date decides which invoices recompute. A rate change effective March 1 changes March forward; it does not silently restate February. Consider Harbor Mixed-Use:

The before/after preview is what lets you confirm the March invoice will be $6,497.26 before you post — and what lets you explain it afterward.

Extensions and rate changes

An extension moves the maturity; a rate change re-rates future accrual. At a renewal they often happen together, and each should be recorded as its own dated term change so the history reads cleanly: boarded at 10.50%, extended and re-rated to 11.25% effective March 1, and so on.

Waiver versus deferral

Waiving interest forgives it; deferring interest moves when it is due. On a single month's statement they can look identical, and they diverge completely at payoff — waived interest is gone, deferred interest is still owed. Record which one you mean, explicitly, as a dated event. This is where imprecise records turn into borrower disputes.

Capitalizing accrued interest

Capitalization rolls unpaid interest into principal, changing the balance future interest accrues on. It is a modification with a before/after, not a payment and not a reserve draw. Post it as its own event so principal — and every downstream interest figure — is correct from the effective date forward.

Advances and paydowns

A protective advance increases the balance; a paydown reduces it and may return principal to investors by share. Both are dated, and both flow into later accrual. A paydown posted without a date, or applied to the wrong period, throws off both the borrower's interest and the investors' returned capital.

Closed periods and reissue discipline

You do not post a modification into a locked month. If a prior document needs correction, reissue it with a reason; the original artifact is retained. This is the discipline that keeps "we fixed it" from becoming "we quietly changed a number in a month we already reported."

What the borrower and investor should see

The borrower sees the current terms and the effective date; investors see the effect on their position. Neither should ever see a term change with no history behind it — the whole point of dated events is that every party can trace how today's number came to be.

Where LoanConsole fits

LoanConsole previews and posts extensions, rate changes, forbearance, deferral, capitalization, advances, and paydowns as dated events, and keeps the prior state read-only in change history.