Secondary Financier

Need to raise funds by selling your loans?

 

Secondary Financiers are institutions who provide secondary or junior debt. A common type of such financing is secondary mortgages by homeowners, who take additional loans using the same collaterals. This works in the same way any other financing works, however, if the debtor defaults on the obligations, the secondary financier does not have primary claim to the collaterals. He needs to wait till the claims on the primary debt are addressed. Since there is a higher risk involved in secondary financing, the amount of loan is also normally limited, accompanied by a rather higher rate of interest. Due to a variety of reasons, secondary financiers may want to sell such loans before maturity and cash out.

 

Challenges

  • Identifying prospective buyers for secondary loans is very difficult, as these loans are not standardized
  • More often these loans come into the sales block because they become more risky, which may be due to changing market conditions, changes in the debtor's capacity to pay, etc.  This makes it even more difficult to find buyers
  • Negotiating and determining the fair value of secondary loans becomes very difficult as a number of factors need to be evaluated

Solutions

  • V4G has a huge database of investors ready to invest in a large variety of assets, including high-risk bonds and loans
  • We assist in negotiations with potential buyers to arrive at the fair value of the loans
  • We provide syndication services to bring together a number of buyers, in case the loan value is large or the risk involved is huge

Benefits

  • We help shortlist and identify potential buyers who have genuine interest in buying your secondary loans
  • Partners and associates at V4G utilize their proven expertise to help you get the maximum value for your secondary loans
  • Our unbiased and independent advisory services ensure complete transparency, thus reducing chances of conflicts in deal making

Sign up as a Secondary Financier and learn more about potential buyers who want to invest in your secondary loans.