Handling Payoffs and Balancing Loans at the End
Closing loans that have paid off is something that you might do less often than many of the other aspects of servicing loans. Moneylender is happy to do all the final calculations with just a little bit of input about what you want to do.
This video shows a variety of scenarios at the end of a loan and how Moneylender will address them. Maybe the borrower paid too much, just a little over, exactly the right amount, just a little under, or maybe they shorted the principal balance. Moneylender will address each of these scenarios when you close a loan to make sure the final balance is properly zeroed out and you can accurately reflect the financials in your books.
One thing I forgot to mention in the video, if you are writing off bad debt and there is no final payment, just use today’s date for the date of closing and Moneylender will charge off the principal presently. If there is no final payment, you don’t want to use the date of the last payment for closing because you are charging off the balance today in spite of the final payment being made.