Recruiting Loans:

Does AdvisorLoans help advisors/firms with a recruiting loan?

Yes. Advisors can use external financing to pay a recruit a recruiting bonus and transitional assistance. This can be used for advisors that are being recruited out of either an employee or independent structure. Depending on which loan program is used, different structures and requirements apply.

Advisors focused on acquisitions are often simultaneously in recruitment mode. Many Registered Investment Advisors (RIAs), Office of Supervisory Jurisdictions (OSJs), and independent broker dealer principals aim to expand their businesses by recruiting advisors to join their teams. They receive a payout from the broker dealer or custodian, then offer a reduced payout to the advisors they bring on board, retaining the difference for the services they provide.

Most advisor business owners are unable or unwilling to match the 10% to 20% (or higher) transition deals that breakaway brokers negotiate when affiliating directly with a broker dealer. To address this challenge, we provide recruitment transition loans. These loans empower recruiting advisors and firms to offer more competitive incentives to attract top talent and provide financial support to new recruits during their initial months of transitioning clients.

Does AdvisorLoans help advisors with refinancing a recruiting note?

Yes. We can help advisors who are moving from independent broker dealers or firms, who need to payoff an existing recruiting note they previously received. If the advisor received the recruiting note from an independent broker dealer or firm while the advisor was 1099, then the recruiting note would be eligible for both SBA and conventional lender refinance.

Are wirehouse/regional recruiting notes harder to payoff with a loan?

Yes. If the recruiting note was received while the advisor was a W2 employee (at a wirehouse or regional) then only a conventional lender option would be available. Most conventional lenders do not have the ability or desire for these types of loans.

The difficulty is that loans received by an advisor while a W2 employee are considered to be personal loans that do not qualify as a business loan eligible for refinancing.

Loans for recruiting bonuses?

Advisors can use external financing to pay a recruit a recruiting bonus and transitional assistance. This can be used for advisors that are being recruited out of either an employee or independent structure. Depending on which loan program is used, different structures and requirements apply.