Entering the Payoff / Renewal Amount
When pricing a new opportunity that will payoff or renew one or more existing loans, it's important to capture the Payoff / Renewal amount in order to understand (and accurately reflect) your net funding needs.
You can choose existing active loans from the list (if your bank uses Relationship Awareness), or simply enter the Payoff / Renewal amount in the loan tab:
- The Payoff/Renewal is used to calculate the Net Funding for the loan, visible in places like the Financial Statement.
- For additional details, see What are Gross and Net Funding in PrecisionLender?
The Opportunity print includes both a total Payoff / Renewal on the first page and the individual amounts on each loan page.
Here's how it looks on the first page:
Conversion Loan Payoff/Renewal Amount
PrecisionLender automatically calculates the Payoff/Renewal amount for your conversion loan as the retained end balance of the primary loan. This value is not editable, but will reflect any changes you make to the construction loan's Draw Schedule or Participations.
See more on pricing conversion loans here: Pricing a Construction Loan that Converts to a Permanent Loan
Payoffs/Renewals in the Dashboard
The dashboard and dashboard exports have the ability to hide or show accounts with Payoffs/Renewals, allowing you to toggle between all production and pipeline opportunities or just the new business opportunities.
Payoffs / Renewals with Relationship Awareness and Active accounts
This section only applies if you have the Relationship Awareness Module enabled (contact support to enable it)
When you associate your Opportunity with a Relationship with existing accounts, the Payoff / Renewal form expands to show you the open accounts that customer currently has. This allows you to indicate accounts that would be paid off by the account and see a summary of their Current (or for Lines of Credit, Average) balances to help determine the payoff amount.
You can also indicate accounts that are at risk of being lost to competition, which will be reflected for the whole Opportunity and can be used to better understand the impact of winning or losing the deal.
Loans that have been marked as at risk in the opportunity or that will be paid off by any loan in the pipeline scenario show that Payoff/At Risk status on the Relationship Tab: