"Creative Cash Flow Solutions For Small Business since 1999"
What IS a Business Note?
A business mote is a document that is generated when an owner sells an existing business to a buyer and caries a portion of the financing. This eventually occurs in approximately 70-80 % of all small business transactions today.
Business notes are one of the few note types for which there are very few buyers. Most paper investment companies will not touch a true business note (no real estate involved as collateral), as they are considered too risky.
In most business sales, less than 20% of the value of the business is rooted in tangible, forecloseable assets (the other 80% being the goodwill of the clientele and the continued future viability of the product/service).
In the event of default, an investor rarely recoups the full investment, which is why the secondary market attaches such a high "risk value" to business notes. The comfort level is equity, in the form of the down payment at the time of the sale, seasoning (or payment history) and payor credit.
For a business note to be salable it typically requires 30-35 % cash down, it must be in first position with very few exceptions, approximately 2-3 months of seasoning and strong personal credit on the Payor.
Capital Profit Solutions recognizes the need to provide noteholders with alternative avenues to draw capital from their business notes without giving away the farm through a total liquidation.
Business notes are one of the few note types for which there are very few buyers. Most paper investment companies will not touch a true business note (no real estate involved as collateral), as they are considered too risky.
In most business sales, less than 20% of the value of the business is rooted in tangible, forecloseable assets (the other 80% being the goodwill of the clientele and the continued future viability of the product/service).
In the event of default, an investor rarely recoups the full investment, which is why the secondary market attaches such a high "risk value" to business notes. The comfort level is equity, in the form of the down payment at the time of the sale, seasoning (or payment history) and payor credit.
For a business note to be salable it typically requires 30-35 % cash down, it must be in first position with very few exceptions, approximately 2-3 months of seasoning and strong personal credit on the Payor.
Capital Profit Solutions recognizes the need to provide noteholders with alternative avenues to draw capital from their business notes without giving away the farm through a total liquidation.
Contact Us Today - for a FREE no-obligation review of your current and future funding needs!
______________________________________________________
COMMITMENT INTEGRITY KNOWLEDGE PROFESSIONALISM
CAPITAL PROFIT SOLUTIONS - P O BOX 1781 - JAMESTOWN, NC 27282
877-470-9732 INFO@PROFITSOLUTIONS.ORG
This web site may contain concepts that have legal and tax implications. It is not intended to provide legal or tax advice
