Succession Lending Announces Funding Of Nearly $70 Million In Conventional Loans For Wealth Management Industry M&A Transactions In First Six Months Of Lending Operations

WAYZATA, Minn., Oct. 3, 2018 /PRNewswire/ -- Succession Lending LLC ("Succession Lending" or "the firm"), the industry's only scalable source of conventional bank loans (non-SBA commercial obligations) to support succession planning-based transactions for independent financial advisors, today announced that it has provided over $68 million in funding for independent and registered financial advisor practices from applicants across 47 states during the firm's first six months of commencing lending operations, exceeding all initial projections.

The accelerated success of the company over such a short timeframe establishes Succession Lending as the top provider of conventional loans for the wealth management industry, as a much-needed, lower borrower default risk alternative to the Small Business Administration (SBA) loans that have largely dominated M&A transaction financing. Unlike SBA loans, conventional borrowers are not required to place a lien on their home and do not face garnishment of basic federal entitlements, such as Social Security and Medicare benefits, in the event of SBA loan default.

Scott Wetzel, JD, Founder and Managing Partner of Succession Lending, said, "Until recently, SBA loans have been the only loan structure offered to independent advisors seeking financing for M&A initiatives.  SBA loans are an important funding source for applicants who do not qualify for conventional financing.  For borrowers who qualify for conventional financing, we offer attractive fixed rate loans in a more efficient and less burdensome underwriting process." 

Mr. Wetzel continued, "Unlike SBA loans, our conventional borrowers are not burdened with floating interest rates. Strong fundamentals inherent in wealth management practices, coupled with low industry default rates, has enabled Succession Lending to partner with progressive banks across the county to offer financial advisors with an alternative to SBA loans with conventional financing solutions."

Led by a team of 26 seasoned financial services executives with expertise in wealth management, investment banking, and cash flow lending, Succession Lending is a conventional correspondent lender that aligns the best rates and terms for independent advisors from a stable of community, regional, and national banks across the country. 

Central to the company's growth has been its concerted focus on two fronts: First, educating banks about the investment advisor space, and successfully overcoming a broad-based lack of understanding amongst lenders about advisor revenue streams, practice valuations, and  fundamentals.  "The path to conventional bank financing has not been without hurdles," Mr. Wetzel stated. "We've been shown the door at more banks than I can recall, but we have been able to assemble a very scalable national network of banks who were willing to listen."

Second, most advisors lack bank relationships and banking courtship acumen required to secure non-SBA funding.  Mr. Wetzel added, "We understand what each bank wants to see and how they want to see it and present each practice accordingly."

Further achievements of Succession Lending since commencing lending operations include:

• Creation of a correspondent lending network of 12 top-tier national banks with total combined assets of over $610 billion

• Processing of over $226 million in loan applicants for independent and registered investment advisors with client assets ranging from $60 million to $3.6 billion, and valuations ranging from $1.1 million to $38 million with an average funded loan amount of $2.1 million

• Refinancing $8 million to $15 million a month in the last quarter from SBA to conventional loans

• Consistently securing fixed rates averaging 7%, below the prevailing floating rates offered by SBA lenders

• Since inception, Succession Lending transactions have never required buyer equity and rarely include a seller's note, providing sellers immediate liquidity for up to 100% of the purchase price

• Acting in the best interests of borrowers and emulating a customer service experience delivered by financial advisors to their clients, is reflected in a significantly faster loan funding timeframe in as little as 24 calendar days, compared to the laborious SBA funding process

Mr. Wetzel concluded, "As we continue to add new conventional lending partners and advisor education around conventional versus SBA increases, we envision an impending industry-wide pivot away from SBA loans.  We are encouraged by our initial results and the continued opportunity to be a positive disruptor, successfully transforming a crucial area of the independent financial advice industry, and excited about supporting of the growth of independent advisors."

ABOUT SUCCESSION LENDING
Succession Lending LLC is a Wayzata, Minnesota-based correspondent lender focused on supporting the growth of independent and registered investment  advisors.  The company originates and underwrites loans to support wealth management M&A across the country.  Qualified borrowers receive funding for succession, acquisition, merger and debt refinancing. Succession Lending partners with a network of banks that are among the most innovative and progressive, yet well-resourced banks in the country to maximize choice, flexibility, efficiency and quality of loan terms for borrowers.  For more information, visit https://www.successionlending.com/

Media Contacts:
Michael Dugan / Mitch Manning
Haven Tower
424 652 6520 ext 106 or 108
[email protected] or [email protected]

SOURCE Succession Lending LLC

Related Links

http://www.successionlending.com