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. The payoff demand processing fee is paid in escrow. Please see more information in the Payoff Demand Instructions. A 10 day payoff is crucial to getting your old loans paid off during a refinance. Learn how it works from start to finish. A payoff letter provides instructions on how to pay off a loan with a lump sum before the loan term ends.