Seller financing loan servicing

by a searcher

1 month ago

I am under LOI with an SMB in Denver. The seller and I have landed on a ten year note at 15% interest with 10% down at closing. I am looking for a loan servicer or possibly software that will automate payment processing and generate documents for taxes, etc.

All of the loan servicing companies I've reached out to specialize in real estate and didn't have any recommendations for where I should look for seller financed business loan servicing.

Thank you for your help!

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9 comments

lender from University of Missouri - Columbia

Hey Will, I am in Denver as well. I am assuming you have financing worked out, but would be happy to discuss if needed.

1 month ago | like reply | 0 likes

searcher from University of Pennsylvania - The Wharton School

Not sure if I am under thinking this but I just run an excel loan schedule for my note and it is super simple. If you aren't prepaying and have a fully amortizing loan, you will have the same payment every month. I just send an ACH the first of the month and have had no issues with the DIY approach. If you are in process of negotiating your note, I also pushed to re-amortize the note over the remaining term with any pre-payment so I can improve my next month's cashflow rather than just payoff early. Adds a bit to the loan schedule complexity but worth the effort for my situation.

1 month ago | like reply | 1 like

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