Promissory Notes Secured By A Business | Business Notes | Seller Financing | SellBizNote

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Promissory Notes Secured By A Business | Business Notes | Seller Financing | SellBizNote

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Business notes (or Promissory Notes) secured by a business .Once the seller and buyers have agreed to the terms of the financing, they sign the Promissory Notes – PowerPoint PPT presentation

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Title: Promissory Notes Secured By A Business | Business Notes | Seller Financing | SellBizNote


1
Promissory Notes
  • What are Business Notes?
  • Business notes are created when a business seller
    decides to help finance the sale of their
    business. The note usually equals the difference
    between the sale price of the business and the
    buyers down payment. For example, Tom decides to
    sell his laundromat for 100,000. He finds a
    buyer, Jerry, who doesnt want to deal with the
    hassles and high rejection rates of the
    conventional bank loan approval process, so he
    opts for seller-financing. Jerry makes a down
    payment of 30,000 and Tom creates a Promissory
    Note (or Business Note) with an original balance
    of 70,000.
  • Once the seller and buyer have agreed to the
    terms of the financing, they sign the Promissory
    Note, which acts as a contract between both
    parties. Once the note is signed, the seller
    becomes the note holder. Much like a conventional
    loan, Jerry makes monthly payments at a
    predetermined interest rate and term.
  • Did you know that Business Notes can be sold?
  • Well offer the seller a lump sum today in
    exchange for the Notes future monthly payments,
    assuming the Note meets our purchasing criteria.
    Generally, we need to see that the buyer has made
    the first two or three monthly payments before we
    can bid.
  • We try to offer the most flexible purchase plans.
    Well quote for either all remaining or a portion
    of the remaining monthly payments.
  • Small-business seller-financing has become a
    great alternative to a bank loan.
  • As we all know, the majority of buyers of small
    businesses are unable to secure a bank loan. The
    void left by banks and the absence of any real,
    easily accessible support from the SBA has
    created an ideal environment for the creation of
    seller-financed business notes.
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