As the next round of Vendor Finance Association meetings approached, Tony Cordato of Cordato Partners, suggested a great topic of discussion for the NSW Meetings, i.e. ‘refinancing your vendor finance buyers into traditional loans’.
How Traditional Lenders See Us
Years ago there was no acceptance by traditional lenders of a vendor finance payment history and this caused some convoluted twists and turns, to get the property refinanced.
Thankfully things have improved. Not to the extent that traditional lenders have generally accepted our payment histories but a small number have and that’s a big improvement.
My opinion is this improving level of acceptance, on the part of traditional lenders, has been due to the improving level of transaction management now spreading throughout our industry. For example, buyers’ payments being collected by independent third parties and specialist vendor finance management companies have increased our industries perceived professionalism.
Follow These Guidelines
I’d like to thank Felicity Heffernan, of Property Loan Advisor, for the effort she has put in, developing the following short video to give us all a quick and very valuable reminder of what we need to do to give our buyers the best chance of refinancing as soon as possible.
If you have further Refinancing hints and tips, please send them to firstname.lastname@example.org and I’ll include them in a forthcoming issue.