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Track a Private Loan in Navexa (using Custom Investment)

No loan tool? Use a Custom Investment: $1 = 1 unit. Record interest as Income, repayments as Sells. Full setup + tips inside.

Tom Wilson avatar
Written by Tom Wilson
Updated over 3 weeks ago

Quick intro

Navexa doesn’t have a purpose-built “loan” feature.
However, you can model a private loan with Custom Investment. Labels are generic (e.g., the Dividend form is used for all income), but the method below works reliably.

Core idea: $1 = 1 unit and keep the price fixed at $1.00.

  • Units = outstanding principal

  • Interest = Income (via Add Dividend)

  • Principal repayments = Sell @ $1.00


When to use this

  • You’ve lent money privately and receive interest.

  • The borrower makes one or more principal repayments.

  • You want the loan’s value and cashflows reflected in your portfolio.


Before you begin

Have these details ready:

  • Loan start date

  • Original principal amount

  • Interest payment schedule & amounts

  • Each principal repayment date & amount

  • Any establishment/legal fees tied to the loan


Step 1 — Create the holding

  1. Add Holding → Custom Investment

  2. Name: e.g., Loan to Example Pty Ltd

  3. Currency: the currency the loan is denominated in


Step 2 — Record the original principal

  • Trade type: Buy

  • Date: loan start date

  • QTY Units: enter the principal as units (because $1 = 1 unit)

    • Example: 100,000 units

  • Price: $1.00

  • Fees (optional): include establishment costs here if you want them in the cost base

  • Click 'Add Investment'

Don’t change the $1.00 price later. All principal movement should happen via units.

Click view loan:


Step 3 — Record interest receipts (Income)

Go to the Income tab. Use the Add Dividend form (it’s the generic income form for all holdings).

  • Ex-div date: use the same date (simple cash basis). If you prefer accrual, use the period end instead

  • Payment date: the day the interest hit your account

  • Franked amount: 0

  • Franking credits: 0

  • Unfranked amount: enter the interest amount (gross)

  • (Additional Fields Optional) TFN Withholding/Tax (if shown): enter any tax withheld so net equals what you received

  • Add Dividend

Why “Unfranked”? Interest isn’t franked, so it all goes in Unfranked with 0 credits.


Step 4 — Record principal repayments (reduce units)

  • Trade type: Sell

  • Units: dollars repaid (because $1 = 1 unit)

  • Price: $1.00

  • Date: repayment date

  • Fees (optional): costs tied to that repayment

  • Save

Repeat a Sell @ $1.00 for each repayment.
When fully repaid, Sell the remaining units @ $1.00 to close the holding.


Worked example (replace with your figures)

  • Buy: 100,000 units @ $1.00 on 1 Jul 2024

  • Income: $500 on 31 Jul 2024

  • Income: $500 on 31 Aug 2024

  • …continue Income entries as paid…

  • Sell: 25,000 units @ $1.00 on 30 Jun 2025 (principal repayment)

  • Outstanding principal after the sell: 75,000 units = $75,000


Fees & special cases

  • Upfront/legal fees

    • Option A (inside holding): add as Fees on the initial Buy

    • Option B (outside holding): record as a Cash Account fee/withdrawal

  • Capitalised interest

    • Record interest as Income, then Buy extra units @ $1.00 for the capitalised amount on that date

  • Partial write-off / default

    • Sell remaining units @ $0.00 on the write-off date to realise the loss and close

  • Different currency

    • Create the holding in the loan’s currency; FX effects will be reflected when viewed in your base currency


What Trade Types not to use for principal

  • Return of Capital: adjusts cost base, doesn’t reduce units

  • Cost Base Increase/Decrease: bookkeeping only, no cash or unit change

  • Cancellation: for closing with no value; for a loss, prefer Sell @ $0.00


Performance tips

  • Want a simple cumulative outcome? Toggle Annualised Returns = Off.

  • With Annualised = On, performance considers the exact timing of cashflows, so it won’t always match a nominal “X% p.a.” on paper.


Quick checklist (TL;DR)

  • Create Custom Investment

  • Buy [Principal] units @ $1.00 on start date

  • Each interest payment → Add Dividend: Unfranked = interest, credits = 0

  • Each principal repayment → Sell [Amount] units @ $1.00

  • Final repayment → Sell remaining units @ $1.00


Troubleshooting

  • Valuation looks wrong after a repayment

    • Confirm you used Sell @ $1.00 (not Return of Capital) and didn’t change the price

    • Units should equal your outstanding principal

  • Interest reduced my principal

    • You probably used Sell instead of Income. Edit the entry to Dividend/Income

  • Tiny residual units

    • Enter a final Sell for the small remainder to zero the position

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