By Selina Stoller, Summit AmeriFirst Holdings, LLC
Now that you’ve decided to reduce your stress and increase your company’s productivity by selling your loans, it’s now time to make sure that you can get the most for your money. This quick guide will help you get your loan portfolio in check before you start selling. Good luck!
First things first, organize everything in a digital file.
Digital files are the fastest and most convenient way to quickly share with others the content of your loan portfolio. Use an Excel sheet or a Google Spreadsheet to organize information about the debtor. Include their name, address, contact information like personal and business phone number(s), email addresses, the date they took out the loan, how much was money was put down, and how much they paid in sales tax and interest.
Pro tip: Don’t risk losing this information by only storing your master list on one computer or on an external storage device. If your business hasn’t already, invest and get familiar with cloud based storage devices. Not only will you have a backup plan in case a device crashes or becomes corrupted, you’ll have peace of mind knowing that your information is safe and easily accessible from any device that can hook up to an Internet connection.
Next, do the math.
In that organized digital file that you now have, you can accurately add up all of the numbers associated with a specific loan. Double and triple check your math. Are interest rates adding up? Is what you have in your digital file matching up with your original paperwork?
Pro tip: Don’t just rely on a computer program to do your math for you. It’s great for an initial draft, but recruit a second or third pair of eyes to make sure that you have the right rates under the right loans. A little vigilance goes a long way!
Finally, cross your t’s and dot your i’s.
As a seller, being organized from the beginning will only motivate the buyer to do more business with you in the future. It should go without saying that filling out the proper documentation is key.
Depending on the situation, ask yourself:
Is it appropriate for non-disclosure agreements to be signed?
Do you (the seller) have the proper assignment documentation and the signed endorsement of the original promissory note?
Did the notary sign and initial when appropriate? (Did the seller? What about the buyer?)
By following these steps, you can rest assured knowing that you’ve positioned yourself to get the most for your money when your selling loans. Good luck!
- 8 May, 2017
- Summit Consumer Receivables Acquisitions, LLC