This is an example of a payoff letter used in a syndicated loan transaction. This payoff letter (including the defined terms such as Lenders,.A payoff agreement is an informal contract in which a creditor agrees to accept the balance of a debt owed as full payment. Create a Loan Payoff Letter online and download it as a PDF or Word document. Customize and print a blank Loan Payoff Letter for free. Provide a clear explanation: Your letter should acknowledge and indicate why something happened.