Westchester County Whole Loan Sales Attorneys

Franchise Lawyers in Metro New York for Whole Loan Trading

If you are the owner of a single franchise location or many locations of the same franchise, you may have taken out multiple loans, not only to get started but also to fund the growth of your enterprise. Financing is an important part of any business venture, and getting the money that you need can be difficult. Unfortunately, the situation can become even more complicated if your lender decides to sell your loan on the secondary market.

At Ivey, Barnum & O'Mara, LLC, our skilled franchise attorneys are equipped to help franchisees who have been affected by whole loan sales. We also work with lenders in negotiating franchise-related whole loan sales to help them reduce their risks and protect their investments. Our team understands the complexities of franchise lending, and we have the tools and resources to help you navigate even the most challenging situations.

What Is a Whole Loan Sale?

When a borrower takes out a single loan from just one lender, the loan is called a "whole loan." Whole loans take many forms, including personal loans and mortgages, as well as franchise-related real estate and equipment loans. The holder of a whole loan is usually responsible for servicing the loan, and the loan is typically included on the lender's balance sheet.

Instead of maintaining ownership of the loan for the entirety of the repayment period, many lenders elect to sell whole loans to larger institutions in exchange for cash. Selling a whole loan allows the lender to transfer the risks associated with delinquency or default by the borrower to the buyer of the loan. The sale also removes the loan from the lender's balance sheet and gives the lender liquid capital that can be used to fund new loans almost immediately.

From the perspective of a franchise lender, it is often beneficial to sell a whole loan to a larger institution for several reasons. First, the lender reduces its risks of being affected by a default. These risks are assumed by the buyer of the loan. Next, the lender can now fund new loans with the proceeds of the whole loan sale. Finally, a franchise lender can, in many cases, earn more money from points, origination fees, and other closing costs from the new loans than would have been generated by interest on the original loan in the same amount of time.

Whole Loan Sales and Franchises

At Ivey, Barnum & O'Mara, LLC, we realize that franchise lending is a niche market, which means that lenders must do everything they can to maintain their position within it. Our experienced attorneys work on behalf of franchise lenders in negotiating and executing whole loan sales. We also protect the interests of franchisors and franchisees when lenders are seeking to sell franchise-related loans. In every case, our clients' best interest is our top priority, and we will do everything we can to facilitate a favorable deal.

Call 203-661-6000 Today

For more information about franchise financing, including franchise-related whole loan sales, contact our office. Call 203-661-6000 for a confidential consultation with a skilled member of our team today. At Ivey, Barnum & O'Mara, LLC, we serve clients in and around the Metro New York area, including in Fairfield County, Westchester County, and the surrounding areas.