A settled loan book is a recurring revenue asset, but most brokers cannot state its value, its run-off rate, or which clients account for the majority of it.
Ask a broker for their settlement volume and the answer comes instantly. Ask what their book is worth, how fast it is running off, or which twenty clients generate a third of the trail, and the answer is usually a shrug and a spreadsheet.
The three numbers that matter
- Lifetime value per client — expected trail across the remaining life of the loan, not this month's payment
- Run-off rate — the percentage of book value lost each year to refinance, sale and repayment
- Concentration — how much of the book sits with a small number of large loans or a single lender
Run-off is the one that gets ignored. A book growing at fifteen per cent with a twelve per cent run-off rate is close to standing still, and the settlement figure hides it completely.
Why concentration is a real risk
If a quarter of the book sits with one lender, a single pricing decision or policy change can move a substantial share of recurring income. If a handful of large loans dominate, losing two of them is not a rounding error. Neither risk is visible without valuing the book at the client level.
"You cannot prioritise retention without knowing which clients are worth retaining."
From reporting to action
Book valuation is only useful if it changes who gets called. Rank clients by lifetime value, overlay attrition risk — rate gap, expiry proximity, contact recency — and the outreach list writes itself. High value plus high risk goes first.
Kayotte projects lifetime trail value per client and pairs it with risk signals, so the book stops being a static list of past settlements and starts behaving like a managed asset.
Projections are estimates based on current balances and assumed loan tenure. General information only, not financial advice.