What is a Business Note?
These are notes created when a business owner sells their
business using owner financing. It is much more difficult to
get a bank loan for the purchase of a small business than it
is to get a loan for a home. Businesses have a historically
high failure rate, and many do not own enough collateral to
satisfy a bank loan.
Sellers usually have no choice
but to offer financing. They accept a cash down payment for
part of the sale, and a promissory note for the balance.
Sometimes the seller is
perfectly content to receive the payments over 3, 5, or more
years. More often, they have needs for the cash today or tire
of the hassle collecting payments.
Eligible Businesses include, but are not limited to:
Auto Repair Shops
Hair, Nail and Day Salons
Various Service Industries
future note payments into immediate cash today . . .
8 Top Reasons Clients
Choose to Sell Their Notes
To have the capital to start their next project
Fund college tuition
Take a dream vacation
Purchase a home, car, boat or plane
Enhance their investment portfolio
Eliminate the hassle and worry of collecting payments
Typical Business Note Buying Criteria
"First" position as lien holder
Substantial down payment (usually 30% minimum)
"Seasoning" (3- 4 payments made already)
Buyer's previous experience in business
Buyer has good credit
While these are typical criteria desired, each transaction will be
considered on it's own terms and strengths. Every note is
reviewed on an individual basis.