What is a third-party loan processor?
If you have decided to finance the sale of your business, you should know that an experienced third-party loan processor can handle all aspects of collecting, crediting, and disbursing third party payments — they simplify the day-to-day management and process of collecting on your loan from the buyer.
Why should I use a third party to administer the payments?
Using a third party to administer the payments simplifies record-keeping. It also removes the obligation from you for handling late payments while focusing on more important matters. This allows you to maintain a good working relationship with the buyer by having an independent third party serve as a buffer if payments ever arrive late.
If you’re curious about what, exactly, it that third-party loan processors can do and who, exactly, are some of the companies that do it, we’ve got the scoop…
Table of Contents
- Services Offered by Third-Party Loan Processors
Services Offered by Third-Party Loan Processors
The services provided by these companies may include:
- Monthly payment accounting, processing, monitoring, collections, receipts, and notifications
- Setup, secure storage and maintenance of records, and annual payment history reports
- Reserve accounting, amortization schedules, account history ledgers, and payoff quotes
- Automatic (ACH) payment directly from buyer’s to seller’s checking account
- Handling and processing late payments and late notices
- Calculating interest, late charges, and due dates to minimize potential disputes
- Mailing 1098 and 1099 interest statements to all parties and the IRS
- Providing referrals for selling your contract
You may consider trying the following companies:
- Automatic Funds Transfer Services | http://www.afts.com/ | 206-254-0975
- Payment Servicing Corporation | https://paymentservicingcorporation.com/ | (406)-257-8186
- Accruit | https://www.accruit.com/ | (866) 397-1031
- Escrow Services, Inc. | http://www.escroserv.com/ | (800) 654-7870
- MidWest | http://www.midwestassetacceptance.com | (585) 377-2810
- Gregory Funding | http://www.gregoryfunding.com | (888) 324-3578