How to manage interest rates and fees in Carta Loan Ops
Loans can carry fixed or variable interest rates:
Fixed | A set annual rate that does not change unless amended. |
Variable | A rate tied to a floating benchmark (such as SOFR or Prime) plus a credit spread. The all-in rate updates automatically when the benchmark changes. |
PIK (payment-in-kind) | Interest that accrues to the outstanding balance instead of being paid in cash. PIK can be configured at the facility or advance level. |
How to view current interest rates
Current effective rates appear on the Overview tab in the Structures table and in each structure's detail view. Select View Interest Rate History to see all rate changes for a structure, including the date each rate took effect.
How to update an interest rate
There are two ways to update a rate on a live loan:
Direct edit (for correcting or setting the current rate without a formal amendment):
From the loan record, open the Structure Detail view and locate the Interest Rate Periods table.
Select Add to add a new period, or Edit on the most recent period to update it.
The payment schedule regenerates immediately. Only the most recent period can be edited or deleted.
Amendments workflow (for contractual changes with an audit trail):
Use the amendment wizard and add Interest Rate Periods as a changed item.
This records before and after values with an effective date.
Standard fees are managed from the Fees tab on the loan record. Common fee types include:
Arrangement fees | A one-time origination fee charged at closing. |
Ticking fees | A fee that accrues during a delayed draw period, based on the undrawn committed amount. |
Unused fees | Charged on undrawn portions of a revolving facility. |
Prepayment premiums | Fees charged when a borrower repays ahead of schedule. |
How to add or edit a fee
Open the loan record and select the Fees tab → Select Add Fee. The scope defaults to Loan but can be changed to Structure or Advance.
Enter a fee name (required), set the scope (Loan, Structure, or Advance), and add optional notes.
Choose a fee type:
Flat
Commitment Fraction
Advance Fraction
Outstanding Fraction
Undrawn Commitment Fraction
Minimum Interest
Then enter the type-specific fields. Flat fees require an amount and currency. Fraction-based fees require a rate (%) and an Applied To basis.
Choose one-time (set a due date, or check Due at Maturity or Drawn from Disbursement) or recurring (set accrual and payment recurrence with business-day adjustments).
Choose Pro-rata (default, distributed automatically by lender participation share) or Custom (set amounts per lender, toggling between percentage and currency mode).
Preview the generated fee obligations, then select Save. The payment schedule regenerates automatically.
How to manage MOIC fees and contingent instruments
MOIC (multiple on invested capital) fees and other equity-linked instruments, such as warrants and success fees, are tracked under the Contingent Fees and Securities tab on the loan record. These instruments are structured separately from standard fees because their value depends on investment outcomes rather than a fixed schedule.