Seller financing loan servicing

July 23, 2024

by a searcher in Colorado Springs, CO, USA

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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Reply by a searcher
from University of Pennsylvania in Seattle, WA, USA

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.

Reply by a professional
from Harvard University in Lynbrook, NY 11563, USA

^redacted‌ and ^redacted‌ have a platform called Zimple Money they mention here that I think accommodates this. Have no firsthand experience with it but have seen them mention it. Excel sheet probably works too if payments are straightforward.

Very high seller note interest rate btw, but assume you know that...

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