What are the best tools for managing seller financing?

lender profile

December 13, 2021

by a lender from Syracuse University - The Martin J. Whitman School of Management in New York, NY, USA

I'm looking for tools that can help manage the seller financing for a customer that is looking to combine a loan that I'm working on with seller financing. The seller is willing to provide very favorable terms for seller financing terms, but only if he is able to have a portal where he can manage the note and pull automatic payments similar to how a traditional lender can. Has anyone come across any tools that can do this?

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commentor profile
Reply by a searcher
from The University of Michigan in New York, NY, USA
Interesting situation - what's the seller's concern here? Someone else may be able to share an actual solution here but in my experience this is something typically handled by accounting - specifically accounts payable. Perhaps you could get the seller more comfortable by structuring it similar to a lease contract whereby you're obligated to pay on the first of the month and there's a penalty paid to seller if you go beyond a 10 day grace window, giving him confidence you won't skip out on a payment if that's his concern.
commentor profile
Reply by a searcher
from Grantham University in Naples, FL, USA
Why not just establish a bank account with both parties with separate user accounts. Buyer credits, seller debits. The bank system will track credits and debts from the account.

The Seller can import this account into QB for example and set up auto payments, withdrawals etc.
commentor profile
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