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Overview

The settlement amount is the total amount a client must send to Lead on the loan sale date. Lead expects this amount to be transferred to the Operating Account before the client sends a Sales Response.
settlement_amount = outstanding_principal + settled_transactions_amount + imputed_interest_accrued
There are other invoicing items besides imputed interest to which you are subject, per your Program Management Agreement.

Please reach out to your technical account manager for more details.

Note: receivables sold and purchased do not include any fees or interest charged to your end customer. Since those funds are not originated by Lead, they will not need to be sold.

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Components of Settlement Amount

The total amount of disbursed transactions (type = disbursement) for each balance_id based on the receivables origination date. Receivables are created at Lead at the balance level when Lead receives a Transactions file with type = disbursement. These are sold back to the client after the seasoning period.

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Example

If the seasoning period is 3 business days, and the sale date is Thursday, then the outstanding principal will reflect receivables from disbursements with a settlement date of the prior Monday.
Lead uses gross settlement, meaning all payments that reduce outstanding principal during the seasoning period will still be collected from the client.
Card refunds are the only exception and uses net settlement:
  • During seasoning: Lead receives refunds directly from the network and nets them out of the settlement.
  • After seasoning: Refund amounts are returned to your operating account.
Daily interest accrued on outstanding principal of receivables created during the seasoning period.
  • If interest-based: Lead charges the same effective APR as the client charges the end customer.
  • If fee-based: For fee-based products (with no end customer interest), the Program Management Agreement outlines the applicable imputed interest rate.
When applicable, the rate is set based on the rate published on the last business day of the month prior to the loan’s origination date. This rate remains fixed for the entire hold period, even if the hold period spans multiple months.

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Example

A loan originates on March 31 with a three day hold period. The applicable rate is taken from 2/28 (the last business day of the prior month), which was 4.39%. That 4.39% rate applies for all three days of the hold period.
Payments are applied on a first-in, first-out (FIFO) basis to non-Lead receivables before being applied to Lead receivables.

Payment reversals are applied in a last-in, first-out (LIFO) order to Lead-held receivables up to the originated amount.

Refunds and disputes affect specific transactions if the original_transaction_id is included.

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Origination & Sale Date

Assuming a three business day seasoning period (please refer to your contract for your program’s seasoning period), here is how origination and sale dates align:
Origination Date
settlement_date of type = disbursement		Sale Date
MondayThursday
TuesdayFriday
WednesdayMonday
ThursdayTuesday
FridayWednesday
SaturdayThursday
SundayThursday
There are currently no weekend settlements since payment rails only operate on business days.
Note: Federal holidays are not business days. For example, on MLK day of January 20th (Monday), any receivables created on Friday (January 17th) will sell on Thursday (January 23rd).

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Examples

FieldReceivables CreatedOutstanding PrincipalSettled TransactionsImputed Interest AccruedSettlement Amount
Weekday Loan Seasoning$20.00$20.00$0.00$0.02$20.02
Weekend Loan Seasoning$20.00$20.00$0.00$0.04$20.04
Payment During Seasoning Period
(no prior outstanding principal)		$20.00$5.00$15.00$0.02$20.02
Payment During Seasoning Period
(prior outstanding principal)		$20.00$15.00$5.00$0.02$20.02
Refund During Seasoning Period$20.00$0.00$0.00$0.01$0.01
Refunds are credited to the Network Settlement Account, so you are not responsible for repaying them if they occur during the seasoning period. If refunds occur outside of the seasoning period, Lead provides funds back to your Operating Account.

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Details

Example assumes origination date of Monday (March 31st, 2026), three business-day seasoning period, imputed interest rate of +10%.
  • (T = Loan Origination Date) There was a $20 card transaction on John’s Balance.
    • type = disbursement
    • transfer_type = card
    • settlement_date = 2025-03-31
  • (Seasoning Period) Receivables are held by Lead for 3 business days. Example assumes 3-business-day hold.
  • (T+Business Day 3 = Thursday) Lead sends Loan Sales Request with following settlement summary:
FieldValue
outstanding_principal$20.00
settled_trnsactions_amount$0.00
imputed_interest_accrued$0.02
settlement_amount$20.02
  • Imputed interest calculation is as follows:
Daily Imputed InterestCalculation
Imputed interest on 3/31 (Monday)$20 of receivables created on 3/31 x (4.39% as of 2/28 + 10%) / 365 days = $0.007885
Imputed interest on 4/1 (Tuesday)$20 of receivables created on 3/31 x (4.39% as of 2/28 + 10%) / 365 days = $0.007885
Imputed interest on 4/2 (Wednesday)$20 of receivables created on 3/31 x (4.39% as of 2/28 + 10%) / 365 days = $0.007885
Total$0.023655 and rounded to $0.02
Example assumes origination date of Thursday (March 27th, 2026), three business-day seasoning period, imputed interest rate of +10%.
  • (T = Loan Origination Date) There was a $20 card transaction on John’s Balance.
    • type = disbursement
    • transfer_type = card
    • settlement_date = 2025-03-27
  • (Seasoning Period) Receivables are held by Lead for 3 business days. Example assumes 3-business-day hold.
  • (T+Business Day 3 = Tuesday) Lead sends Loan Sales Request with following settlement summary:
FieldValue
outstanding_principal$20.00
settled_transactions_amount$0.00
imputed_interest_accrued$0.04
settlement_amount$20.04
  • Imputed interest calculation is as follows:
Daily Imputed InterestCalcuation
Imputed interest on 3/27 (Thursday)$20 of receivables created on 3/27 x (4.39% as of 2/28 + 10%) / 365 days = $0.007885
Imputed interest on 3/28 (Friday)$20 of receivables created on 3/27 x (4.39% as of 2/28 + 10%) / 365 days = $0.007885
Imputed interest on 3/29 (Saturday)$20 of receivables created on 3/27 x (4.39% as of 2/28 + 10%) / 365 days = $0.007885
Imputed interest on 3/30 (Sunday)$20 of receivables created on 3/27 x (4.39% as of 2/28 + 10%) / 365 days = $0.007885
Imputed interest on 3/31 (Monday)$20 of receivables created on 3/27 x (4.39% as of 2/28 + 10%) / 365 days = $0.007885
Total$0.039425 and rounded to $0.04
Example assumes origination date of Monday (March 31st, 2026), three business-day seasoning period, imputed interest rate of +10%. There was a payment of $15 towards the credit balance on Wednesday (April 2nd, 2026).
  • (Prior to T) There were no outstanding principal on John’s account (outstanding_principal = $0)
  • (T = Loan Origination Date) There was a $20 card transaction on John’s Balance.
    • type = disbursement
    • transfer_type = card
    • settlement_date = 2025-03-31
  • (Seasoning Period) Receivables are held by Lead for 3 business days. Example assumes 3-business-day hold.
    • (T+Business Day 2 = Wednesday) Client sends $15 card payment on John’s Balance
      • type = payment
      • transfer_type = card
      • settlement_date = 2025-04-02
  • (T+Business Day 3 = Thursday) Lead sends Loan Sales Request with following settlement summary.
    FieldValue
    outstanding_principal$5.00 ($20 - $15 card payment) The entire $15 is applied to the newly disbursed amount using FIFO logic (first-in, first-out)
    settled_transactions_amount$15.00
    imputed_interest_accrued$0.02
    settlement_amount$20.02
  • Imputed interest calculation is as follows.
Daily Imputed InterestCalcuation
Imputed interest on 3/31 (Monday)$20 of receivables created on 3/31 x (4.39% as of 2/28 + 10%) / 365 days = $0.007885
Imputed interest on 4/1 (Tuesday)$20 of receivables created on 3/31 x (4.39% as of 2/28 + 10%) / 365 days = $0.007885
Imputed interest on 4/2 (Wednesday)**$5 **remaining of $20 receivables created x (4.39% as of 2/28 + 10%) / 365 days = $0.001971
Total$0.017741 and rounded to $0.02
Example assumes origination date of Monday (March 31st, 2026), three business-day seasoning period, imputed interest rate of +10%. There was a payment of $15 towards the credit balance on Wednesday (April 2nd, 2026).
  • (Prior to T) There was outstanding principal on John’s account of $10 (outstanding_principal = $10).
  • (T = Loan Origination Date) There was a $20 card transaction on John’s Balance.
    • type = disbursement
    • transfer_type = card
    • settlement_date = 2025-03-31
  • (Seasoning Period) Receivables are held by Lead for 3 business days. Example assumes 3-business-day hold.
    • (T+Business Day 2 = Wednesday) Client sends $15 card payment on John’s Balance
      • type = payment
      • transfer_type = card
      • settlement_date = 2025-04-02
  • (T+Business Day 3 = Thursday) Lead sends Loan Sales Request with following settlement summary:
FieldValue
outstanding_principal$15.00 The $15 payment is applied as follows using the FIFO method. - $10 reduces the pre-existing balance - $5 reduces the newly disbursed $20 - The remaining $15 of the new loan is still outstanding
settled_transactions_amount$5.00
imputed_interest_accrued$0.02
settlement_amount$20.02
  • Imputed interest calculation is as follows:
Daily Imputed InterestCalculation
Imputed interest on 3/31 (Monday)$20 of receivables created on 3/31 x (4.39% as of 2/28 + 10%) / 365 days = $0.007885
Imputed interest on 4/1 (Tuesday)$20 of receivables created on 3/31 x (4.39% as of 2/28 + 10%) / 365 days = $0.007885
Imputed interest on 4/2 (Wednesday)$15 remaining of $20 receivables created x (4.39% as of 2/28 + 10%) / 365 days = $0.005914
Total$0.021684 and rounded to $0.02
This example shows how a refund during the seasoning period affects the settlement amount. If the refund is traceable to the original transaction using original_transaction_id, the associated receivable is reversed, and the client is not required to repay the amount.
  • (Prior to T) There was outstanding principal on John’s account (outstanding_principal = $10)
  • (T = Loan Origination Date) There was a $20 card transaction on John’s Balance
    • client_transaction_id = txn_1
    • type = disbursement
    • transfer_type = card
    • settlement_date = 2025-03-31
  • (Seasoning Period) Receivables are held by Lead for 3 business days. Example assumes 3-business-day hold.
    • (T+Business Day 1 = Tuesday) Client sends refunds the $20 transaction.
      • client_transaction_id = txn_2
      • type = refund
      • transfer_type = card
      • settlement_date = 2025-04-01
      • original_transaction_id = txn_1
    • (T+Business Day 3 = Thursday) Lead sends Loan Sales Request with following settlement summary.
FieldValue
outstanding_principal$0.00 Given original_transaction_id of txn_1 was provided, Lead is able to attribute this and bring down the receivables created to $0. If no original_transaction_id is created, we won’t be able to attribute refund accordingly.
settled_transactions_amount$0.00 Refund is the only transaction type that will be net settled with Lead.
imputed_interest_accrued$0.01
settlement_amount$0.01
  • Imputed intereste calculation is as follows:
Daily Imputed InterestCalculation
Imputed interest on 3/31 (Monday)$20 of receivables created on 3/31 x (4.39% as of 2/28 + 10%) / 365 days = $0.007885
Imputed interest on 4/1 (Tuesday)$0 remaining of $20 receivables created x (4.39% as of 2/28 + 10%) / 365 days = $0.000000
Imputed interest on 4/2 (Wednesday)$0 remaining of $20 receivables created x (4.39% as of 2/28 + 10%) / 365 days = $0.000000
Total$0.007885 and rounded to $0.01
Notes On Refunds
  • If a refund occurs during the seasoning period and is matched to a disbursement, the refunded amount is netted out of the settlement.
  • If a refund occurs after the seasoning period, Lead will return the refund to the client’s Operating Account instead.
  • Refunds must include original_transaction_id to ensure proper matching and netting. If there are no original_transaction_id referenced for refunds that happened during the seasoning period, then it will not be reflected in settlement_amount calculation.