Business Note FAQ

M & M Funding Solutions

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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.

Will my note qualify?

Probably Yes, If you have:

Received a reasonable down payment at the time of the sale;
A payer with an average credit score;
Collected at least one note payment;
A note in first position;
No more than sixty payments yet to collect;
No balloon payment;
Your payor has a good pay history on the note;

Can I sell all or part of my note?

We can purchase all or part of your remaining payments. Selling part of the payments allows you to receive a lump sum of cash up front, then payments when the note reverts back to you. We can even pay cash for a portion of each monthly payment.

Many people elect to sell just enough payments to meet their cash needs today and keep some of the future payments as an investment or nest egg. Always ask for an option that meets your need.

Why is my note worth more now than ever before?

With favorable interest rates and new buying guidelines, investors are able to pay more now than ever before.

How will selling my note affect the payor?

The payor experiences no change in the way the payments are structured. The only change will be to whom and where the payments are mailed.

How do I get started?

To start the process of selling your note to us,complete the application. We also request copies of the documents that were originated at the time of your sale:

Copy of the note
Attachments to the note
Closing statement,if any
Pay history and current balance

We will then give you a firm offer, subject to verification and the buyer's credit review. Once under contract, you will receive your cash as soon as all of the documentation can be obtained. This typically takes as little as 10-15 business days.

Why should I consider using your company?

We pride ourselves on:

Quick Closings
Excellent customer service
Competitive quotes
Providing customized options
Strong financial backing
Over a decade of experience
Flexibility on all note purchases
Confidentiality with all transactions
Credibility in the industry

Will I need to Attend the Closing?

Not necessarily. We can close the transaction by sending you a closing package by overnight delivery along with easy to follow instructions.

Why should I sell my real estate note?
Peace of Mind

Usually a note is accepted in lieu of the cash actually desired for the sale. If held long enough, many contracts will eventually pay off. However, by selling all of part of the note, you will never again have to worry about:

Collecting the payments
Default and Foreclosure
Destruction/devaluation of the business
Federal Income Tax reporting requirements
Bankruptcy of the payor
Divorce or death of the payor
Abandonment of the business
Deficiency judgments
IRS tax liens/other liens against the payor
Assumption of your note by another payor

What are some common reasons people sell their notes?

To pay off debts with a higher interest rate
To pay unexpected debts such as hospital bills
To pay for tuition, vacations or new cars
To settle estates or divorces
To relieve bookkeeping and collection burdens
To invest in a business, stocks, real estate or other more profitable venture
Tired of collecting small monthly payments and want to enjoy the cash now

Did not want to carry the note in the first place

Who Can Benefit from the Sale of Business Notes?

About 85 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 sold a business that you are still holding a note for, contact us for further information or click on the application and complete the worksheet.

FREE, No Obligation Consultation! Contact M&M Funding Solutions at 586-566-6914