Mergers & Acquisitions

Resources: M&A Encyclopedia

Comprehensive articles on every step of the process of buying or selling a business from the most exhaustive encyclopedia of M&A articles in the industry.

M&A Seller Financing: Third-Party Loan Servicing


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
  • Companies

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 | | 206-254-0975
  • Payment Servicing Corporation | | (406)-257-8186
  • Accruit | | (866) 397-1031
  • Escrow Services, Inc. | | (800) 654-7870
  • MidWest | | (585) 377-2810
  • Gregory Funding | | (888) 324-3578