Skip to main content

Recording a Loan Payoff

Since version 0.41.0, Lendiom has a dedicated feature to record when a borrower pays off their loan early.

What is a Loan Payoff?​

A loan payoff happens when the borrower pays the entire loan amount at once, which can occur at any time during the loan period. When you record a loan payoff, the loan is marked as paid in full and the loan balance becomes zero.

Recording Loan Payoff Overview​

To record a loan payoff, follow these steps:

  1. Click on the Actions button.
  2. Then, click on the Record Pay Off button.

Record Pay Off Button Screenshot

A modal window will appear where you can enter the details about the early payoff. Here's what it looks like:

Record Pay Off Modal Screenshot

Input Descriptions​

Payoff Date​

Enter the date when the payoff was received. The system will calculate how much the borrower needs to pay based on this date.

Status​

Select Pending to mark the loan as pending payoff. Once the payment clears your bank account, you can update the status to Success, which will mark the loan as paid off.

Select Success to mark the loan as paid off.

Payment Method​

Choose the method of payment used by the borrower. This can be any of the payment methods listed on the adding a transaction page.

Amount Paid​

Enter the amount of money received from the borrower.

Adjustment Amount​

If the amount paid and the payoff amount due don't match, you'll need to make an adjustment. This can happen if there are fees, discounts, or credits involved.

Comment​

Since this is a significant event for the loan, you're required to add a comment. We recommend including payment method details, especially if it's a check, cashier's check, or money order, to help your accountant balance your books.

Mismatch Amount Warning​

If the payoff amount due and the amount paid don't match, the system will display a warning about a mismatch amount. Lendiom calculates the difference in real-time. Here's an example:

Record Pay Off Mismatch Amount Warning Screenshot