Welcome to Sell-Ur-Note
Private Owner Financed Business Notes
Business notes are created when a business owner sells a business using owner-financing. It is significantly more difficult to get a bank loan for the purchase of a small business than it is to get a loan for the purchase of a home. Businesses historically have a high failure rate, and often do not have enough collateral to satisfy a bank loan. We offer several options if you would like to sell your Business Note payments. These options are designed to meet your immediate and future financial needs. Financing carried back by the seller to facilitate the sale of a business often occurs because:
- Buyer or business couldn’t qualify for conventional or SBA financing
- Buyer and/or seller did not want to take the time required for SBA financing.
- Buyer was unable or unwilling to pay all cash
- Buyer wanted to conserve cash for working capital
Why a seller may want to liquidate his/her carry-back note?
- Seller would have preferred all cash at the sale
- Seller has large debts to pay
- Seller wants to make another investment
Most small business sales are financed, at least in part, by the sellers themselves. Offering seller financing puts the seller in a stronger position to get a better price and a faster sale. Buyers nearly always need seller financing. Their advisors strongly recommend it. Seller financing acts like a bond for performance to assure that the seller will live up to the promises made to the buyer during the sales process. Seller financing is seen by most buyers as an indication that the seller has faith in the future of the business. Buyers can expect, however, that sellers who offer seller financing must also act a lot like a bank! A buyer can expect to be asked to secure the loan and sign a personal guaranty. We offer several options if you would like to sell your Business Note payments. These options are designed to meet your immediate and future financial needs.
Sell-Ur-Note PURCHASE PARAMETERS OF BUSINESS NOTES
We are very aggressive in the purchase of Business Notes. The following are the basic criteria that we look for in Seller Financed Business Notes.
- All Business types considered
- First Lien positions ONLY
- Personal guarantee of payor
- 30% down payment by purchaser (smaller down payment in some cases)
- 3 months of seasoning (less seasoning in some cases)