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Prepayments shorten or reduce a deal term or the planned repayments. Several options are available in FlexFinance for modelling such a situation:

  • Delivery to deals
    Prepayment curves can be defined in FlexFinance and an assignment can be delivered to each deal.  The deadline for which a certain portion of the remaining debt was repaid is defined.  Separate payments are added to the payment plan and the interest and repayments are adjusted accordingly.
  • Presentation as a balance sheet scenario
    Prepayment amounts can be totalled at an aggregated level are spread linearly over a defined period. This allows prepayments to be simulated for a loan portfolio at cumulative level.  
  • Reproduction using shift scenarios
    Individual payments can be shifted, entirely or partly, into the past, cf. Shift of Payments. In this way, it is possible to bring forward e.g. 20% of all repayments for a loan portfolio.  This corresponds to a prepayment of over 20% of repayments planned for 3 to 4 years for a loan portfolio.
  • Reproduction using cash flow scenarios
    Any number of cash flows can be defined and taken into account in analyses. Prepayments can be defined at relative dates at cumulative level. 
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