Yes, paying off your financing early is a responsible financial decision that can save you money on interest. Here's what you need to know about early loan repayment:

Check loan agreement

Begin by reviewing your loan agreement. It will outline whether early repayment is allowed and if there are any associated penalties or fees.

Prepayment penalties (if applicable)

Some loans may have prepayment penalties, which are fees charged for paying off the loan before the agreed-upon term. If your loan has these penalties, they will be outlined in the agreement.

Interest savings

If applicable, based on your loan and lender, paying off your loan early can lead to significant interest savings. You'll pay less in interest over the life of the loan since the outstanding balance is reduced sooner.

Contact your funder

If you're considering early repayment, it's a good idea to contact your Lendio loan specialist. They can provide specific details on the process and any additional steps you need to take.

Confirm payoff amount

Request an updated payoff amount from your lender. This ensures that you're aware of the exact amount needed to settle the loan early.

Preferred payment method

Check with your lender to confirm the preferred method for making an early repayment. This could be a direct payment through their platform or another specified method.

Document the transaction

Keep a record of the early repayment transaction. This includes payment confirmation, receipts, or any correspondence with the lender regarding the early payoff.

Check for credit implications

While early repayment is generally beneficial, it's a good idea to check with your lender if there are any potential impacts on your credit profile.

Enjoy financial freedom sooner

By paying off your loan early, you free up your finances sooner, giving you greater flexibility and peace of mind in managing your business's financial health.