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Seller-Financed
Business Note
Financing carried
back by the seller
to facilitate the
sale of a business
often occurs because
the buyer was
unwilling/unable to
pay cash or unable
to qualify for
conventional or SBA
financing.
A seller may want to
liquidate their
carry-back note
because seller has
debts to pay, wants
to make another
investment or
prefers cash rather
than payments
structured over a
period of time.
A good business note
will have:
• A minimum
of 30% equity
•
At least 3
months seasoning
• Good payor
credit
• Fully
amortized note (5
years or less
preferred) with no
balloon
• 1st lien
against all assets
•
Evidence of positive
cash flow
•
Personal guarantee
from the payor
Some basic
observations
regarding pricing:
•
Unseasoned
notes will have a
larger discounted.
• The shorter
the remaining term
the lower the
discount.
Feel free to contact us anytime for a free no-risk consultation toll-free at (877) 836-4661 or
if you have any questions. |
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"You got me the cash I needed, just like you said you would."
- Sandy M. Florida |
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"After an unpleasant experience with a competitor SFG took over and was there for my children and me every step of the way."
- Karen R. Illinois |
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