Payoff Letter

Definition of a Payoff Letter.  What is a Payoff Letter?

A Payoff Letter is a letter that is required often by a Lender proving that other loans the borrower had are paid off and have a $0 Balance.

Examples of a Payoff Letter:

– A request to show other small business loans are paid off.
– A request to verify that a credit card is paid off.
– A Letter showing that a similar type of loan has a zero balance and is paid off.
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Did you know?

These Letters are also called a “Zero Balance Letter”.   They are often referred to this way to emphasize that the Letter needs to show that the balance is Zero.

Why are they requested?

Lenders may want to make sure that certain loans are paid off in order for them
to be willing to approve and fund a new loan.

Payoff Letter
What are Payoff Letters?

Customers cannot always provide this letter.
Sometimes customers are not well versed in this field.  Another reason is they also don’t like getting paperwork together and are unsure how to do it.   Customers also see it as a burden that they do not have the time or desire to deal with.

How to Handle a Payoff Letter request:

If a Lender asks you to provide a Zero balance letter, find out which Institution it is.
If you have more than one loan with that institution, get the Account number to make sure you will be getting the information for the correct account.    Once you have this information, call the customer service number for that Lender.

Tell the Representative what you need and they will transfer you to the correct department.  Most Companies have specific Departments that handle this type of request.   You will be routed to that Department and they will provide the Letter.  In most cases you will receive the Letter in 2 to 4 hours.

If you have been asked for this type of Documentation, call us to discuss.   Explain what you are being requested to provide.   There are other Financing products that do not require this and other forms of verification.   You can apply for other Financing options and avoid having to provide this type of Documentation.

FAQ Frequently asked questions on a payoff letter

What is the payoff letter?
A payoff letter is issued by the lender. It shows the amount required to payoff the borrowers existing loan by a certain date for the loan to be fully paid off. They often contain dates by which the payment must be made and how much the payoff increases each day or month if it is not paid by that date.
What is a payoff demand letter?
A payoff demand letter is issue by a lender that requires the borrower to payoff the transaction. It includes the total amount required, a pay by date, account number and payment options. I typically states consequences for the borrower if the demand is not met. Borrowers are best served to review their loan contact carefully and possibly seek legal counsel if they receive a demand letter.
What does it mean to request a payoff?
To request a payoff, a borrower contacts the lender and asks how much is required to be paid to pay of the loan they have, and also the date the lender needs the payment by. The lender will usually send the borrower an official letter verifying the payoff quote. After payoff, borrowers should verify the account was fully paid off.

Learn more about other types of request for proof of Documentation such as
Proof of income.

Recent examples from the Web:

Therapeutics Corporation entering into a Payoff Agreement and Letter.

Payoff merchant cash advance

How can you payoff a merchant cash advance?  Escape your merchant advance by paying off the balance and terming it out much longer. Terms from 6 or 9 months and all the way out to 36 months or longer.
Join thousands of businesses who have paid off their merchant cash advances.
Apply below today.
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Determine what your balance is.   Complete a list of your equipment assets,
which includes Computer, medical, industrial equipment and machinery.
We will approve a loan to payoff your balance and payoff your merchant cash advance
and help you set up a 24, 36 or 48 month repayment term.   Even if you only want
to term the balance off to 24 months, this will significantly reduce your monthly payment compared to what your business was paying.

Payoff merchant cash advance

If you took out a $25,000 merchant advance for 6 months you were paying around $248 per day, or $5,457 per month.   By terming the financing out to 24 months, you will reduce the monthly payment to $1,562 per month, which is only 28% of what you were paying.  If you go out 36 months, you will reduce your payment to $1,083 per month, 19.8% of the amount you were paying.   This difference will make a dramatic positive influence on your cash flow.

How do I payoff my MCA Merchant cash advances?   What is a an MCA Merchant Cash Advance Payoff?
My MCA Merchant Cash advances are killing me.  These MCA merchant cash advances are killing my business and going to force me to close my business.   How can I save my business from these MCA’s?
These financing products all payoff MCA merchant cash advances.   The payoff is through a consolidation that lowers your daily payment at least 40% or more.    Start now.

Most frequent Requests:
– Help me payoff my MCA Merchant Cash Consolidation.
– I need get rid of my MCA Merchant Cash Advances
Help my business get out of my cash advances.
Some customers call in, skip the questions, and just ask us to do consolidate advances.  All of these requests fall into the same MCA consolidation relief product.

For immediate Release – Tucson belt company pays off merchant cash advance with 1 loan.

The company had 3 merchant cash advances totaling $75,000 with a total monthly payment of $15,000.   The monthly payment was using almost all of the company’s cash flow.   The company had 6 months left on their advances.   The three advances were combined for 1 loan for 12 months.   The monthly payment was lowered to $7,500, thereby increasing the company’s cash flow by $7,500 per Month.   President Bradford Jennings told BizTucson, “This Consolidation program was an excellent and necessary way to improve the cash flow for these Advances.   It has dramatically improved our monthly cash flow.   We will be able to increase our advertising and inventory levels.   Gross receipts are expected to increase and net income rise.  We look forward using the increased cash flow for productive reasons.”

If you are a business owner that took out a short term cash advance and are saying any of the following things or questions below, contact us today to get cash flow relief.

Callers will say they need to get out of a merchant advance to help payoff a merchant cash advance.  Other callers say they need to escape a business cash advance.    Many businesses will admit they can’t handle our business cash advance.   They will specifically say: We are trapped in a merchant cash advance.   The message is always similar in that business owners tell us they are trapped in a merchant advance.   

You will only need to complete a short 1 page Mini app and provide an equipment list which can be completed online.   The approval process takes 1 – 3 business days.  If you are approved, the closing documents may be E-Mailed to you or completed online.   You complete them and return the completed documents via fax.   A verbal verification call is completed with you and you receive funding within 1 to 2 business days afterwards.

payoff merchant cash advance
How to payoff a merchant cash advance

For other resources such as writing a business plan, you can contact the
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