The broker question is really a value question
A dealer should not use a broker simply because a broker exists. The practical question is whether the broker's market knowledge, buyer relationships and transaction coordination can help the dealer reach an appropriate transaction for the portfolio.
Financial Solutions is an independent BHPH note broker. We do not purchase portfolios for our own account. Third-party buyers decide whether to make an offer, set their own terms, perform due diligence and fund approved transactions.
What a BHPH note broker can do
Review the sale pool
Help identify which accounts may fit the proposed sale and which weaker or nonconforming accounts may be better retained before the opportunity is marketed.
Prepare the opportunity
Help organize the first-look portfolio information so potential buyers can understand the accounts without unnecessary back-and-forth.
Identify buyer fit
Different buyers can have different preferences for seasoning, geography, account size, collateral, performance and transaction structure.
Compare more than price
Purchase price matters, but so can recourse, holdbacks, servicing transfer, buyback provisions, fees, timing and other closing terms.
Coordinate the process
A broker can help keep communication, diligence requests and closing steps moving between the dealer and the selected buyer.
Structure the pool before it reaches buyers
A dealer does not always have to begin by presenting every receivable as part of the proposed sale. Financial Solutions can review the accounts under consideration and help the dealer structure a selected sale pool based on performance, seasoning, documentation and likely buyer fit.
That may mean retaining weaker, delinquent, recently originated, or otherwise nonconforming accounts rather than including them in a particular offering. This is sale-pool selection, not concealment. If a potential buyer requests broader portfolio performance or other information for its evaluation or due diligence, the dealer should provide it accurately.
How is Financial Solutions compensated?
Compensation can vary depending on the transaction and buyer. In some transactions, Financial Solutions is compensated directly by the buyer, so there is no separate brokerage fee charged to the dealer.
If a proposed transaction includes a dealer-paid brokerage fee or other dealer-paid compensation, it should be disclosed so the dealer can evaluate the transaction based on actual net proceeds and the complete terms—not a generic assumed broker percentage.
When going directly to a buyer may make sense
If you already know a buyer that is a strong fit for your portfolio, understand its terms, are comfortable handling the data preparation and diligence process yourself, and prefer a one-buyer conversation, a direct sale may be perfectly reasonable.
Speed matters, too
Working with a broker does not have to mean waiting weeks for buyer feedback. Because Financial Solutions works with established BHPH note buyers and understands the information they typically need, qualified portfolios can typically receive an initial offer or indication of buyer interest within 24–48 hours after we receive the necessary first-look information.
This is a typical initial-response timeframe, not a guarantee of final approval, closing, or funding. Buyer due diligence and transaction timing vary.
When a broker may be useful
Brokerage may be worth considering when you do not know which buyers currently fit your paper, want help comparing available options, have a portfolio that needs to be presented clearly, or prefer someone experienced with BHPH note sales to coordinate the process.
Questions to ask any broker
- How are you compensated on this transaction, and is any brokerage fee being charged to the dealer?
- Will you tell me which buyers will receive my portfolio information?
- What information do you need for an initial review?
- How do you protect sensitive consumer information?
- What transaction terms should I compare besides purchase price?
- What happens if I decide not to accept an available offer?
The objective: an informed decision
Financial Solutions' role is to help a BHPH dealer understand the opportunity, market the portfolio to appropriate potential buyers, evaluate available terms and coordinate the transaction. A dealer remains free to decide whether an available transaction makes business sense.