Payoff Formula Data Fields

Payoff Formula

A word or phrase that describes the payoff formula being established.

1st Level __% Credit for __ Months

For the first level of the payment formula, enter the percentage of payment to apply towards the purchase. The percentage must be typed in decimal format, i.e. 100% = 1.0000.

Enter the number of months the percentage of credit applies to. If the percentage entered is to be applied to all payments to calculate rent credit, enter 99 as the Months.

2nd Level __% Credit for __ Months

Enter the percentage of payment to apply towards the purchase. The percentage must be typed in decimal format, i.e. 80% = .8000.

Enter the number of months the percentage of credit applies to. If the percentage entered is to be applied to all payments to calculate rent credit, enter 99 as the Months.

Examples: 1) If 100% of payments made in the first six months applies towards the purchase, the 1st level payment formula should appear as: 1.0000% Credit for 6 Months. If 80% of all remaining payments applies towards the purchase, the 2nd level payment formula should appear as .8000% Credit for 99 Months. 2) If no payments apply, both payment levels should read as .0000% Credit for 0 Months. 3) If all payments apply towards the purchase, the 1st level payment formula should appear as 1.0000% Credit for 99 Months. The 2nd level payment formula should be left blank.

Do you wish to give credit for late payments?

If you will give the customer credit for a payment that was made late, click this box in order to select it. If you do not give credit for payments that are made late, be certain this box is deselected.

Payoff contract if credit exceeds purchase price?

If the contract is to pay off once the rent credit accumulated has reached the price of the item being rented, click this box in order to select it. If the contract is not to pay off, be certain this box is deselected.