---
title: "Capital Management - Transactions & Balance Impacts"
slug: "capital-management-transactions-balance-impacts"
updated: 2026-05-05T17:12:52Z
published: 2026-05-05T17:12:52Z
canonical: "help.getbuilt.com/capital-management-transactions-balance-impacts"
---

> ## Documentation Index
> Fetch the complete documentation index at: https://help.getbuilt.com/llms.txt
> Use this file to discover all available pages before exploring further.

# Capital Management - Transactions & Balance Impacts

### **Purpose**

Capital Management helps you track fund-level transactions — including funding requests, repayments, interest, and fees — while simultaneously allocating those transactions across Deals via Pledges.

---

### **Key Features**

1. **Transaction Creation**: Record facility or equity activity and allocate it across pledges using the Transactions workflow.
2. **Funding Request**: A principal-impacting transaction that records a draw of capital from a Capital Source. When transferred, it increases the Capital Source Balance by the Transaction Amount.
3. **Repayment**: A principal-impacting transaction that records a return of capital to a Capital Source. When transferred, it decreases the Capital Source Balance by the Transaction Amount.
4. **Interest Payment**: An interest-impacting transaction that records the payment of accrued interest owed to a Capital Provider. When transferred, it does not affect the Capital Source Balance or Pledge Allocations — it is recorded for tracking, reporting, and fund-level cost accounting purposes only.
5. **Fee**: A fee-impacting transaction that records a fee or charge paid to a Capital Provider. When transferred, it does not affect the Capital Source Balance or Pledge Allocations — it is recorded for tracking, reporting, and fund-level cost accounting purposes only.

---

### **How It Works**

#### Creating Capital Source Transactions

Use transactions to record facility or equity activity and allocate it across pledges.

Step-by-Step Instructions:

1. Go to **Portfolio** > **Capital Management** > **Transactions**.

![](https://cdn.document360.io/b8e7a68c-6af4-4b6e-8d8d-23371810eaa1/Images/Documentation/image(724).png)
2. Select **Create transaction**.
3. Note that **Status** defaults to **Pending**. Transactions will not update balances until status is **Transferred**.

![](https://cdn.document360.io/b8e7a68c-6af4-4b6e-8d8d-23371810eaa1/Images/Documentation/image(725).png)
4. Select a **Fund**.
5. Select a **Capital Source**.
6. Select a **Transaction Type**.
7. Select an **Effective Date**. Use Effective Date to record when a transaction is effective — past, present, or future.
8. Enter the **Transaction Amount**.
9. In **Pledge Balance**, select one or more pledges.

![](https://cdn.document360.io/b8e7a68c-6af4-4b6e-8d8d-23371810eaa1/Images/Documentation/image(726).png)
10. Enter the amount of the transaction that will be allocated to each pledge's balance.
11. Select **Save**.

| **Transaction Type** | **Definition** |
| --- | --- |
| Funding Request | A Funding Request is a principal-impacting Transaction that records a draw of capital from a Capital Source. When a Funding Request is posted and Transferred, it increases the Capital Source Balance by the Transaction Amount. |
| Repayment | A Repayment is a principal-impacting Transaction that records a return of capital to a Capital Source. When a Repayment is posted and Transferred, it decreases the Capital Source Balance by the Transaction Amount. |
| Interest Payment | An Interest Payment is an interest-impacting Transaction that records the payment of accrued interest owed to a Capital Provider on a Capital Source. When an Interest Payment is posted and Transferred, it does not affect the Capital Source Balance or any Pledge Allocations — it is recorded for tracking, reporting, and fund-level cost accounting purposes only. |
| Fee | A Fee is a fee-impacting Transaction that records a fee or charge paid to a Capital Provider on a Capital Source. When a Fee is Transferred, it does not affect the Capital Source Balance or any Pledge Allocations — it is recorded for tracking, reporting, and fund-level cost accounting purposes only. |

---

#### Impact to Pledge Calculations by a Funding Request or Repayment

Use Capital Management to review pledges tied to a facility or equity capital source.

Step-by-Step Instructions:

1. Go to **Portfolio** > **Capital Management** > **Pledges**.

![](https://cdn.document360.io/b8e7a68c-6af4-4b6e-8d8d-23371810eaa1/Images/Documentation/image(727).png)
2. In the dropdown, select the capital source that the transaction was posted against.
3. After a Funding Request or Repayment transaction, the following field calculations will be updated: available, pledge balance, dry powder, and current advance rate.

| **Field Name** | **Definition** |
| --- | --- |
| Pledge | Combination of the Deal Name and Funding Source associated to the Pledge. |
| Outstanding Balance | Principal Balance of the Fund Allocation for Debt / Funded to Date of the Fund Allocation for Equity. |
| Pledge Advance Rate | The % multiplier that is expected to be advanced by the Capital Source. |
| Available | Pledge Advance Rate × Current Balance = Available. The amount available to be advanced from the Capital Source, based on what has been funded and repaid on the associated Funding Source. |
| Pledge Balance | The current amount advanced by a Capital Source's investment in a Funding Source. This represents the true balance on any given day of an investment. This balance is managed from the Capital Management page. |
| Dry Powder | Available − Pledge Balance = Dry Powder. Dollars that can be allocated from the Capital Source. |
| Current Advance Rate | Pledge Balance / Outstanding Balance = Current Advance Rate. The calculated rate at which dollars have been advanced from the financing partner. This figure is provided as a means to compare against the Pledge Advance Rate and understand what is "Available". |

---

### **Best Practices**

> [!NOTE]
> Note:
> 
> - Transactions will not update balances until the status is changed to **Transferred**. Transactions default to **Pending** status when created.
> - Interest Payment and Fee transactions do not affect the Capital Source Balance or Pledge Allocations — they are recorded for tracking, reporting, and fund-level cost accounting purposes only.