EPO Early Payoff and how it changes over time

<< Click to Display Table of Contents >>

Navigation:  Help Desk >

EPO Early Payoff and how it changes over time

We often get questions like "My customer is asking why their EPO went up since their last payment?". EPO can change daily, you should make sure your employee tell customers that EPO can go up over time because as every day goes by they owe more rent and have less prepaid rent(if they are paid ahead).

 

How EPO is calculated is based on a lot of different settings, but generally EPO willl go up daily as you go through time, take the example below.

 

On the left EPO quoted on 6/15/2023, they have $363.90 in pre-paid rent.

On the right EPO quoted on 7/15/2023, now they only have $291.12 in pre-paid rent, so their EPO went up.

 

clip0082clip0083

 

Or another example, lets say you quote a customer their EPO every month AFTER they pay a payment, and they pay on time every month, their EPO you quote will go down every month, everytime you quoted them the EPO they had a month of pre-paid rent taken off, now after a few months they come in on their due date and ask for the EPO BEFORE they pay their payment, the EPO would be higher than the last EPO you quoted because on their due date they are not pre-paid a month ahead, so they have no deduction for pre-paid rent.