How do I record a note redemption?

To record the redemption of a note by a company that has repaid your note, you will need to record a "Note Redemption" transaction. Use the quick exit tool found on the Investment page of the company's profile, and Seraf will generate the "exit transaction" for you. 

Or, if your note has been redeemed in part, enter your own transaction following these steps:

  • Check which round of the company you're active in by going to the By Round tab found in Current Investments. Take note of the note round name you'd like to redeem. If you use investment accounts, note which account originally purchased the note. You may need to click on the round and open a transaction to see the detail.
  • Enter a new transaction.
  • Select the Company.
  • Select the Round.
  • Select "Note Redemption" for the Transaction Type.
  • Enter the Date the note was redeemed.
  • Enter the Amount Received.
  • If you received a return of principal different from the amount of total principal remaining (i.e. a partial note redemption), enter the Principal Amount Redeemed. Otherwise, you can leave this field blank and the system will assume that the whole note, or what remains of it, was redeemed. 
  • If this signifies the final redemption of this note, then verify that the Exit Transaction box is checked off. If the note still holds value, uncheck the box. 
  • Enter notes in the Memo field (optional).
  • Click "Save".

Note that you can also record interest transactions for "Interest Paid in Cash" or "Interest Paid in Stock". If your note was not redeemed but rather converted to stock, enter a "Note Conversion" transaction. If you received nothing for your note, then enter a note redemption for $0 amount received. 

If you have notes in multiple rounds, you will need to create separate note redemption transactions for each note round in which you participated. Similarly, if you invest under multiple entities, you'll need to record a transaction for each entity that has a holding. The best spot to see a summary of your holdings for a particular company is the Investment tab within the company profile. 

Once entered, you will be able to view your note redemption(s) from the Exits & Returns section of your account or by visiting the Investment tab of the company profile.

Enterprise accounts will need to Update Calculations in order to see the updated records.

Have more questions? Submit a request


Powered by Zendesk