> For the complete documentation index, see [llms.txt](https://advisorhub.syntheticfi.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://advisorhub.syntheticfi.com/product-deep-dive/repayment.md). # Repayment {% hint style="info" %} ## Repayment is simple The client can pay off the loan entirely, pay it down partially, or make regular payments at any time. There are no required payments and no defined term. {% endhint %} ### Two ways to repay * **Early repayment.** Paying down or paying off the loan before the current loan expires. You request this in the SyntheticFi portal, and we'll help you determine the amount. It's a more manual process. [Full details](https://docs.google.com/document/d/1Dip0uduW0yMkrc7D73d6MwH0Fmrs8vOfS5AP5AWcMPQ/edit?usp=sharing) * **Planned repayment.** Paying at expiration; any free cash in the account is automatically applied, and the remaining balance rolls forward. [Full details](https://docs.google.com/document/d/1MJycd4lgxl2XSxPUC4SThc8TIExoo6Osi32x378j5-U/edit?usp=sharing) ### How planned repayment works To pay down at expiration, move cash into the brokerage account holding the loan. To pay off completely, deposit the full repayment amount. To pay down partially, deposit whatever amount you want applied. When the loan expires, the cash is automatically applied and the rest rolls forward. To find the full repayment amount, check the advisor dashboard and click into the account to see the loan details. SyntheticFi sends a reminder email one week before each expiration, including the expected roll-forward plan. If you want to handle it differently for the client, just reply to that email. ### The default roll-forward Understanding repayment means understanding the default roll-forward: * At expiration, SyntheticFi rolls forward the amount due minus any cash in the account, into a new floating-rate loan. * If there's more cash than the amount due, the loan is paid off and not rolled. * If there's no cash, the full principal and interest roll forward automatically. **Example:** A loan starts with a $99,000 principal and $100,000 due at expiration. At expiration, $2,000 of cash is in the account. That $2,000 is applied, so the new loan rolls forward with a $98,000 principal, $1,000 went to interest, $1,000 to principal. A key point: a fixed "term" only means the rate is fixed for that period. It does not mean the principal is due at the end. The client can pay whatever they want, whenever they want, or roll the balance forward. A few details: * **No late fees.** If cash arrives late, there's no penalty. You can make an early partial repayment or wait until the next expiration. * **Negative margin balance automatically repaid.** If the account has a negative margin balance, the new loan automatically covers it. For the full walkthrough, see the [planned repayment guide](https://docs.google.com/document/d/1MJycd4lgxl2XSxPUC4SThc8TIExoo6Osi32x378j5-U/edit?usp=sharing). ### Making monthly payments For clients who want to pay down monthly, the recommendation is to set up recurring journals or ACH transfers into the loan account. Loans expire on the third Friday of each month. Make sure funds arrive before the third Wednesday so the system recognizes the cash and reduces the roll-forward amount. ### Alternative roll-forward strategies To pay down differently from the default, change it in your dashboard, or email . Common alternatives include: * Paying interest-only * Paying a specific amount * Rolling forward both principal and interest ### Rolling into a fixed-rate loan Instead of staying on a floating-rate loan, the loan can be rolled into a fixed-rate loan, a good fit when the client needs long-term funding or doesn't want to make monthly payments. Email to set this up. {% hint style="info" %} ## Keeping the loan in its own account is easier to manage Holding the loan in its own account, separate from the collateral, makes repayment and roll-forward easier to manage. If your loan is currently in the same account as the collateral and you'd like to separate them, let us know, we can set up aggregate margin. {% endhint %} *** [\* Important Disclosures](/disclosures.md) --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. 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