In this post we’ll take a closer look at how to access and use the “Monthly Overview” report available on the Reports page of your Bondora account.
Like the other reports you only need to enter a date range to generate the information. Once exported to a CSV file you can review the detailed numbers behind your investments. The information is organized into three common accounting reports:
- Cash Flow Statement
- Income Statement
- Balance Sheet
Let’s take a brief look at each of them.
Cash Flow Statement
This is the most robust of the three reports. It provides up to date accounting of all inflows and outflows from your account. This information is valuable for investors who want to monitor fees, repaid principal and repaid interest. The month by month account provides a snapshot of your performance. Most importantly, the holistic view makes trends visible so you can adjust your holdings accordingly.
This is the most consolidated view. Use this report to help plan and project future earnings based on past performance. Investors can also look at the developing relationship between “Planned Interest” and “Received Interest.” By examining what percentage of the planned interest results in received interest you can gauge the likelihood of expected income in future months. You’ll notice this relationship ebbs and flows each month.
The Balance Sheet maps out your portfolios outstanding principal based on the status of principal payments. The loan balance is grouped into period cohorts, showing how much of the total outstanding principal each group holds. These can also be thought of as risk groups – the bigger the share of outstanding principal in the “overdue” groups, the more risk your whole portfolio holds. It is a good risk mitigation option to keep an eye on the overdue groups and periodically analyze how the values change over the months. For example, if the report shows that the shares of the outstanding principal in the overdue and default groups are starting to increase, then appropriate measures should be taken to mitigate the risk.