Note Brokers: The advantages of brokering Business Notes to Security Financial Services
We use our own funds to offer fair, competitive pricing to note sellers
Our low cost of funds allows us to offer substantially lower discounts. Our yield requirements vary on a case-by-case basis but typically run in the 14% to 17% range. Sellers net from roughly 75% to as much as 90% of the Note balance (after broker commission).
We allow brokers to charge ANY commission as long as the Note seller accepts the net lump-sum quote. Put more money in your pocket today.
Fast approval and closings
Security Financial can fund in as quickly as 10-15 business days. We have the know-how to quickly make a bid, underwrite, and fund a note. No loan committees. Once we’ve received the executed closing documents from the seller, we’ll send Note Brokers a commission check and a separate check for the Note proceeds to the seller.
A great alternative to Real Estate Notes
Many of our top note brokers are focusing primarily on Real Estate Notes, but have come to realize that the marketplace for Business Notes is less saturated.
No up-front or processing fees
Our quotes are net, with no additional costs to you or the note seller.
The majority of our note brokers are repeat customers
We aim to create a lasting relationship with our brokers. Over 70% of the submissions we receive are from repeat brokers.
For other advantages and broker tips, check out our conversation with Tracy Z, founder of noteinvestor.com, one of the leading websites in the Note industry:
Selling and Buying Business Notes With Security Financial
By Tracy Z
Selling a business and taking back a promissory note is common practice. However, finding investors to buy a business note without real estate as collateral is a bit more challenging. Fortunately there is Security Financial Services (SFS), a third generation company that specializes in buying business notes!
We interviewed Marc Rouda, Senior Vice President, for our Note Buyer’s Directory to learn about their business note programs, pricing, and updated investment criteria.
What type of notes does Security Financial Services purchase?
Marc Rouda: Security Financial is an institutional investor that purchases seller-financed business notes. We don’t purchase real estate Notes, factoring contracts, or any other types of cash flows.
What is unique about your company?
We were one of the first companies to invest in business notes in the mid 1990’s, so our team has the know-how to guide brokers to fast closings. But what makes us unique is our ability to offer very competitive bids – our cost of money is low because we use a mix of our own equity and very reasonably priced unsecured lines of credit.