Payoffs and Renewals

When pricing a new opportunity that will pay off 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 information in the 'Payoff / Renewal' field in the loan tab.

 

Shows payoff/renewal field on the pricing screen

Notes

The Full Opportunity printout includes both a total Payoff / Renewal on the first page and the individual amounts on each loan 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.

Shows the payoff and renewal field for a conversion loan

 

See more on pricing conversion loans here: Pricing a Construction Loan that Converts to a Permanent Loan

 

Entering Payoffs/Renewals for Opportunities without a Relationship

If you do not have Relationship Awareness or have a relationship that does not exist in PrecisionLender, then you can enter the amount of the payoff and prior commitment.

Shows the payoff renewal field without relationship awareness, which only contains a prior balance and prior commitment field

Entering 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 all or individual 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.

If the customer has existing accounts with the same product type as the loan being priced, those accounts will be displayed first. You can toggle the 'Show' dropdown menu to view all of the existing loan accounts, or only certain products. Display's the 'Show' menu where you can filter the clients active loan accounts by product

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.

Displays the check boxes where you can mark all accounts as payoff or at risk

 

Payoffs/Renewals in the Opportunity Dashboard

The opportunity dashboard and opportunity 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.

Shows the opportunities dashboard and where you can choose whether or not you would like to see Payoffs and Renewals