What Are Business Notes?
A business note is a promissory note secured by a business and its assets.

How Are Business Notes Created?
Business notes are created when a business owner sells a business using seller financing. The note is secured by the business and its assets in case the buyer defaults.

Who Can Benefit from the Sale of Business Notes?
About 75 percent of all business sales involve seller financing. The seller will accept a cash down payment for part of the sale and a promissory note for the rest. Often the seller of the business involved wishes to move on to another venture or industry or may need money for expansion.

If you have recently sold a business that you are still holding a note for, contact us for further information.

There are 6 items needed to consider buying a business note:

1. The buyer needs to put at least 30% down.
2. The buyer has to have experience running the new business.
3. The term of the note needs to be 5 years.
4. There can be no balloons in the note.
5. The interest rate needs to be at least 10%.
6. There needs to be at least 4 payments already paid on the note.