When early repayment matters

Short-duration facilities are built around a specific requirement. Sometimes that requirement pays off sooner than planned: the stock sells faster, the client pays early, the contract claim lands ahead of schedule. When that happens, it is worth knowing what finishing early means for the cost.

Finishing early can cost less

Early repayment is permitted. Pay out your facility early and we discount the remaining cost by up to 50%. Paying out early does not undo what has already been repaid, but it can reduce what is left to pay.

Refinance or fresh payout

How much the discount is depends on whether you are refinancing with SYSTM or paying out from your own funds. The two situations are different:

• A fresh payout means you settle the facility from your own funds and finish with it.
• A refinance is a new facility with SYSTM that pays out the old one, for example to top up or to restructure what is left.

Refinancing options are available on request. Where the early payout discount applies, the payout figure on the old facility carries it, and the new facility is assessed and documented in its own right.

Ask for the figure before you pay

Do not work out a payout figure yourself and transfer it. Ask us for the payout figure first, and we will confirm it in writing before you pay. That figure takes into account what has been paid so far, any amounts that are due, and the discount that applies to your circumstances. Paying an amount you have estimated can leave a small balance owing, or an overpayment that then has to be sorted out.

When finishing early makes sense

Paying out early is usually worth considering when the requirement has been met and the cash is sitting in the account. It can also make sense when you want to take on a new facility for the next job and would rather start clean.

It is not always the right move. Clearing a facility with cash the business needs for the next few weeks of payroll or suppliers can leave you short at the wrong moment. Before you pay out, look at what is coming in and going out over the next month, not just the balance today.

Think about it at the start

The best time to think about early repayment is before you sign. If there is a real chance the job will pay out quickly, choose a term to match, and keep in mind that the option to finish early is there if it comes in sooner still. If you are unsure how a payout would work for your facility, ask us before you sign rather than after.

The early payout discount depends on the circumstances of the payout and is confirmed in writing before you pay, and every facility is subject to credit approval. If you are weighing a payout or a refinance, ask us for an indicative read and the figure that would apply.