What is uncapitalised interest on money owed to you?

Uncapitalised interest on money owed to you refers to the interest that accumulates on a loan or debt but is not added to the principal amount. This means that the interest is calculated on the original principal rather than on a larger amount that includes previous interest. Essentially, it allows the borrower to pay only the principal amount plus the interest accrued without increasing the overall debt. It’s often relevant in contexts such as loans, where interest may be deferred or not compounded.