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Loan Extensions vs. Partial Payments

You will learn the difference between loan extensions and partial payments in Bravo, including how each affects loan terms, due dates, and interest.

Last Updated:  5/6/2025

In this article, we'll explore the key differences between Loan Extensions and Partial Payments in Bravo. Understanding these differences can be quite helpful when making decisions about your options.

Loan Extension

  • You can make small payments and extend the loan with each payment.
  • Payments can be as little as a day's prorated interest and fees.
  • Extensions do not allow for payments toward the principal.

For more information on Loan Extensions, click Extension Options and Configuration.

Partial Payments

Partial payments enable customers to make smaller payments on their loans. The store needs to be set up to accept Partial Payments in order to use this option.

  • This method allows for extending the loan only by full periods.
  • You can make smaller payments on your account. Amounts less than the interest and fees due for a period will be credited toward future payments.
  • Payments can go toward the principal once all interest and fees are up to date.

Rules for Partial Payments

Here are the rules for partial payments:

  • Any payment will first cover interest, then fees. After the current interest and fees are paid, any leftover amount will go toward the principal.
  • Interest is calculated for each period based on the remaining principal at the start of that period.
  • Once the interest for a period is paid, the loan's maturity date can be moved forward by one period. If there are multiple periods of interest due, the maturity date can be adjusted as each period's interest is paid.
  • If there’s no interest due when a payment is made, that payment will go toward the principal without changing the maturity date.
  • When a loan expires, the total cost of the items is based on the remaining principal, not the original loan amount.
  • Partial Payments with a Principal Payment/Reduction are not designed to work with Interest or Fee Rebating. The amounts may not appear correctly on the loan Redemption.
  • The store must be configured to accept Partial Payments to use this method.

Once this feature is set up, the Partial Payment button becomes available. When a loan is selected in the Transactions screen or shown in the staging panel, the usual loan Extension button will be replaced with a Partial Payment button.

For more details on Partial Payments, click How Partial Payments work.