Also called: Payout figure, Settlement figure
Early payout
Early payout is settling the full balance of a finance contract before the scheduled end of the term. The payout figure is quoted by the lender and may include remaining principal, accrued interest, any balloon, administration fees and break costs.
What is an early payout?
Early payout is settling the full balance of a finance contract before the scheduled end of the term. The payout figure is quoted by the lender and may include remaining principal, accrued interest, any balloon, administration fees and break costs.
Example
A business selling a machine two years into a four-year contract requests a payout figure to clear the finance before transferring the asset.
Why it matters
The payout figure is rarely the sum of remaining repayments, so always get it in writing before agreeing to sell or refinance.