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# How Are Loan Transactions Matched in Companio?

In Companio 2.0, loan transactions are matched according to their purpose in the loan process. There are two main matching types:

### 1. Loan principal / Initial Principal Payment

This represents the initial transfer of funds from the lender to the borrower when a loan is granted. It records the disbursement of the principal amount of the loan to the borrower, not the repayment.

Example:
A company signs a loan agreement for €50,000. When the lender transfers the €50,000 to the company’s bank account, the transaction is matched as **“Loan principal / Initial Principal Payment.”**


### 2. Loan Installment / Repayment Installment

This represents a scheduled payment made by the borrower to the lender as part of the loan repayment process. Each installment typically includes a portion of the principal and, if applicable, interest.

Example:
A company has a €50,000 loan to be repaid in 10 monthly installments. Each month, the company pays €5,000 of principal plus €200 of interest. Each such payment is matched as **“Loan Installment / Repayment Installment.”**

These two matching types ensure that every part of your loan process—whether receiving funds or making repayments—is recorded correctly in Companio.