Has Anyone Sold Their Commission Renewal Blocks of Business?

[CSGFinancial]

Has anyone ever sold there renewal commission income to a third party? I was looking to raise some money to buy leads and grow my client base and I ran across a company called Access Capital Group. They seemed very professional and the process appears to be pretty straight forward. Just looking for anybody that has gone through this process before or has worked with Access Capital Group?

 

[jacobtn]

not sure about them, but what are they paying for Shenandoah Life renewals?

 

[G.Gordon]

IMO someone would sell their renewals when looking to exit the business or change focus all together. For example if you're wanting to exit the senior market and go P/C then I'd say go for it. If you're planning on staying in the senior market why would you sell your rights to that book? I'm pretty sure if you look at the contract you'll find that you're in breach of that contract if you contact or service that book in any way.

 

[Todd King]

I can tell you from my own experience that it can be done, but probably shouldn't. About 8 years ago, I stupidly let someone talk me into that because he was going to bankrupt his agency anyway...I let him talk me into it and I regret it to this day! There are other ways to raise money for leads than to sell the renewals you worked so hard for. If you need to raise the money for leads bad enough you'll find a way that doesn't negate all the work you've done.

 

[patch36]

I got a telemarketed computer call from them yesterday and hung up 15 seconds into the call. It all seems rather desperate to sell your future commissions at a discounted rate. If you are in the position where you need to do this, then you have given up and are not selling enough to make it. If you need more money, sell more.

 

[CSGFinancial]

I have some Shenandoah Life renewals and I tried to sell those to Access Capital but they would not buy them. I am not looking to sell all my renewal commissions but just a couple companies. I did review my contracts and you are able to have those assigned to a third party as long as the company signs off on the assignment. I do appreciate the comments regarding giving up the equity that has been built up in these renewals, I think though they are paying very reasonable multiples for the business. I am still not sure I am going to go through with the sale, but thanks for the advice.

 

[Russ]

I have some Shenandoah Life renewals and I tried to sell those to Access Capital but they would not buy them.

I don't blame them.

 

[G.Gordon]

I have some Shenandoah Life renewals and I tried to sell those to Access Capital but they would not buy them.

I'm with Russ... I don't blame them either. Come on... did yhou really expect someone to buy potential commissions from a company that is BROKE?

Never ask someone else to do what you wouldn't do.