Important Information About Selling Your Business Note

Click here for information on how to sell a business note and get a free quote

How much can I sell my note for?

How much cash you receive for your note ultimately depends on a number of factors, but as a general rule, for a full purchase, you can normally expect to be paid somewhere between 50% and 80% of the balance of the note.

Like all notes sold on the secondary market, your business note will be purchased at a discount, in order to make it attractive to the investor who will buy it. Without a discount, there is no incentive for the investor to incur the risk of waiting 3-5 years (or more) to get his money back. And since it is an historical fact that over 90% of new business owners fail within the first 5 years, there is considerable risk attached to the purchase of any business note.

However, even though you will receive less than the full balance of your note, business brokers unanimously agree that the total cash you receive from the down payment and the sale of the note will usually be about the same amount as you would have received from an all-cash sale of your business. That's because all-cash buyers can insist on a much lower selling price. This means that even though you'll sell your note at a discount, you will be in about the same cash position you would have been in, had you found an all-cash buyer. But by offering seller-carry back financing you accomplished the following:

Do I have to sell all of it, or can I just sell a part of my payments?

Depending on your financial goals, you don't have to sell all of your note ... You can sell just a portion of it. That's called a partial purchase, and when you complete our worksheet, you will be asked how much cash you need. Give some serious thought to that question, because your answer will determine whether a full or partial purchase is in your best interest. If you choose to sell just part of the note, you have two future options:

• After the investor has received the payments he bought, the remaining payments will revert back to you.

• You can sell the remainder of the note at a higher price than you would have received for that portion of the note if you had sold the whole note. This is true because, due to the future value of money, the portion of the note you keep becomes more valuable as time passes.

Before we can purchase a business note, it must have been in existence and receiving payments for several months. However, here are some ways we can be helpful to a business owner and his advisors prior to the sale of the business:

• We can advise the business owner about the advantages, as well as the risks, of carrying back a business note.

• We can help structure the business sale transaction and the note to make the note safer and more valuable to the seller.

• We will review the business and decide if it is one on which we want to own a note.

• We will review information regarding a potential buyer and decide if we want to hold a note on which he or she is the payor.

BACK TO BUSINESS NOTES

We are dedicated to helping business note holders nationwide convert their long-term payment streams into large lump sums of cash as quickly as possible.

For a quote click here, or call us today at 623.536.0896, or email us.

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If you know a company or individual holding notes or any other income stream, but would prefer a lump sum of cash, click here. If we purchase their note, WE'LL PAY YOU a finder's fee!