Payout figure (redemption statement)

BY MICHAEL SHANG · SIXTEEN YEARS IN COMMERCIAL BANKING · UPDATED 2026-11-06

// THE SHORT ANSWER

A payout figure is the amount an existing lender says it needs, on a named settlement date, to repay a loan in full and release its security; in the UK it is usually called a redemption statement. It adds to the balance the interest accrued to that date, any break cost on fixed-rate lending and discharge fees, and often a daily rate if settlement slips. The incoming lender or the borrower's lawyer pays against it in exchange for the discharge or a solicitor's undertaking, so a figure that has expired, or that leaves out another facility the security covers, can leave the old security in place.

BASIS  Practitioner judgment from sixteen years in commercial banking, set out in How Bankers Think (Highbank Press, 2026). Every borrower on this site is a composite constructed for teaching, not a client. The market is mid-market commercial lending as practised in New Zealand and Australia; where a convention differs elsewhere, the page says so.