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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 email us if you have any questions.