Recording a Loan Payoff

Overview

Since version 0.41.0 of Lendiom, there is a dedicated feature to record a loan payoff when a borrower pays off their entire loan early. Recording a payoff marks the loan as paid in full and reduces the balance to zero.

What is a Loan Payoff?

A loan payoff occurs when the borrower pays the remaining principal and interest in a single lump sum, effectively ending the loan. This can happen at any time during the loan term.

Recording Loan Payoff Overview

To record a payoff:

1. Open the loan and click the Actions button.
2. Select Record Pay Off from the menu.

When you choose Record Pay Off a modal appears where you enter the payoff details:

Input Descriptions

• Payoff Date – the date the payoff was received. The system uses this date to calculate the payoff amount.
• Status – choose Pending if you are recording the payoff before the funds have cleared; update to Success when payment clears to mark the loan as paid off.
• Payment Method – select the payment method used by the borrower (see the Adding a Transaction guide for available methods).
• Amount Paid – enter the amount received from the borrower.
• Adjustment Amount – if the Amount Paid differs from the calculated payoff amount, enter the difference here (for fees, discounts, or credits).
• Comment – required. Describe the payment details. Including check number or payment reference helps with accounting.

Mismatch Amount Warning

If the Amount Paid and the calculated payoff amount do not match the system displays a mismatch warning showing the difference in real time.