Selling a Lending Business

Most lending businesses price off two things: how durable the fee stream is and how much liability can follow it after close. Buyers dig into how you get paid (servicing income, origination fees, basis points on balances, referral fees), who can reprice you, and whether you have repurchase or chargeback exposure. For a starting point, use Rejigg’s free valuation calculator, then adjust for partner concentration, consent requirements, and rate sensitivity.

No. Brokers charge 5–10% of the sale price for work an informed owner can do themselves with the right tools. Rejigg gives you pre-vetted buyers, digital NDAs, a secure data room, direct messaging, and an offer dashboard so you can run a broker-free process without losing control of confidentiality. Start with the preparation guide, then list once your diligence materials are in shape.

Sometimes, but it depends on what the business actually does and whether regulators or partner banks allow the ownership and control changes that come with SBA financing. SBA lenders also scrutinize recurring cash flow, compliance costs, and contingent liabilities like buybacks. Before you burn weeks on a buyer’s financing plan, run payment scenarios with Rejigg’s SBA loan calculator and pressure-test whether your consent timelines and cash flow can support it.

Some lending deals close in a few months, but many run longer because of partner consents, bank compliance diligence, and vendor-risk reviews. The fastest processes usually have three things ready early: a clear “how we get paid” map, a short list of change-of-control approvals, and audit-ready evidence. Rejigg keeps NDAs, documents, and buyer questions in one workflow so diligence stays tight. See the due diligence checklist.

Prepare documents that prove your revenue survives and your risk is manageable. That usually means partner contracts with change-of-control, termination, and repricing language called out; recent bank vendor-risk packets; audit and incident-response artifacts; and an invoice walkthrough that separates pass-through costs from real gross profit. If you touch credit decisions, include a shareable underwriting and exceptions summary. Rejigg’s secure data room lets you control who sees what and when.

A working capital adjustment is a closing true-up so the business transfers with a normal level of day-to-day operating assets and liabilities. In lending, this can get nuanced because remits, chargebacks, and vendor payables can swing around month-end, and one unusual cutoff can distort the “normal” number. Aim for a simple definition tied to historical averages, not a cherry-picked month. Rejigg’s offer comparison dashboard helps you spot and compare working capital terms across offers.

An earnout pays you additional purchase price later if the business hits targets after closing. In lending, earnouts show up when revenue depends on origination volume, balances, or partner economics that can change quickly with rates. Pick a metric that matches how you actually get paid and that you can measure cleanly every month. Get tight on definitions, reporting rights, and who controls key levers like pricing, channel routing, and marketing spend. Use Rejigg’s negotiation guide to structure it.

Buyers usually focus on reps that protect them from hidden compliance and performance liability. Expect detailed questions about legal compliance, accuracy of loan or file data, ownership and assignability of key contracts, undisclosed investigations, and whether performance claims match source data. If contracts include repurchase, indemnity, or chargeback language, buyers will ask for trigger history and any reserves you carry. It helps to summarize exposures early and back them with documents in Rejigg’s controlled data room.

Not always. Many buyers mainly care that bank vendor-risk reviews will not stall growth after the deal. You can often get there with solid evidence: security policies, incident history, access controls, business continuity plans, and a recent penetration test summary. If SOC 2 is underway, share the scope, what is done, and what is still open. Rejigg lets you share sensitive security artifacts only after buyers sign NDAs through the platform.

Change-of-control clauses can force partner consent, allow termination, or trigger repricing. That can turn your sale into a high-stakes negotiation with the counterparty right when you want certainty. Identify the few agreements that control revenue, summarize the clauses in plain English, and confirm the approval process before you commit to a close date. Rejigg’s data room and deal tracking keep consents as a visible checklist instead of a last-minute scramble.

Show concentration the way it actually exists in lending, which is often partner or integration concentration rather than one end-customer. Break revenue and volume out by sponsor bank, lead buyer, marketplace, core integration, or processor. Then explain what keeps each relationship sticky, plus what would need to happen for it to unwind. Buyers can price concentration when the story is specific and supported. Rejigg helps you share this breakdown safely with vetted buyers under NDA.

Taxes depend on deal structure and what you are selling, like equity versus assets and how the purchase price is allocated across categories. Lending can add complexity if you operate across multiple states, use regulated entities, or transfer servicing rights or loan assets. Bring in a tax advisor early so you do not agree to an allocation that costs you real money later. Rejigg helps you keep offers, drafts, and allocation language organized while you evaluate outcomes.

Seller financing means you take part of the purchase price as payments over time. In lending deals, buyers often ask for it when there is partner consent risk, rate sensitivity, or uncertainty around renewals and volume. If you offer a note, match the protections to the real risks, like reporting requirements, covenants, and clear remedies if payments slip. Rejigg’s offer comparison tools let you review seller financing terms across buyers in one place.

Many lending deals include a transition period because relationships and compliance ownership do not hand off overnight. Buyers usually care most about continuity in three areas: who answers audits and risk questionnaires, who manages partner escalations, and who can explain the revenue mechanics with real examples. A strong plan assigns each responsibility to a person, sets a timetable, and shows how authority shifts after close. Use the transition planning guide to document it.

Buyers usually will not pay a profit multiple on pass-through costs you do not keep. Expect an invoice walkthrough that shows what you bill and remit versus what you retain as gross profit, plus proof that vendor fees are not about to jump. If your margin depends on volume tiers, rebates, or quarterly true-ups, document the exact terms and show the historical net impact. Rejigg’s QuickBooks integration can help keep the supporting detail organized inside your data room.

Timing is usually driven by readiness and risk events, not the calendar. Look at whether your last few quarters reflect normal operations or a temporary rate-driven spike or dip. Also, factor in partner renewal dates, change-of-control consent lead times, and upcoming audits that could drain your team during diligence. Rejigg lets you talk to vetted buyers early and pressure-test timing under NDA without broadcasting that you are for sale.

Confidentiality matters in lending because sponsor banks, partners, and key employees can react quickly to sale rumors. Use NDAs before sharing anything sensitive, and stage disclosure so early conversations stay high-level until buyer intent is real. On Rejigg, buyers are pre-vetted, NDAs are signed digitally, and you control document access in a secure data room, so contracts and compliance files do not end up as email attachments.