What is a business note?

A business note is normally a promissory note secured by a business. This would include any inventory and equipment that belongs to the business, but does not include real estate property.

What kind of business notes do you purchase?

The Types of business notes we purchase include restaurants, convenience stores, florists, medical / professional practices, laundromats, drycleaners, printers and lots more.

What is the advantage to selling a note?

Economic factors like inflation and the rising cost of living make money in the future worth less than money today.
Today the value of your note(s) will depend on several factors:

• The collateral securing the note (if any)
• Number of remaining payments
• Interest rate (if any)
• Credit worthiness of the party making payments to you.
  

What is involved in the sale of a business note?

When you sell a business note the investor buying your note needs to get an assignment of the security instrument, UCC-1 Financing Statement, and then take an endorsement of the promissory note. This finalizes the note sale and transfers ownership to the investor while the seller gets the lump sum of cash he is owned. As your business note broker I will work closely with you and the investor in the collection of the necessary documents needed to finalize this note sale. I will get you the best prices for your promissory note because I have relationships with some of the top buyers in the country. It usually takes 3-6 weeks to close, depending on how fast documents can be gathered and the due diligence period runs it course.

What documents do I need to close a business note?

Here is a list with some of the documents you will need:

• Signed note of Personal Guarantee (if corporately signed note).
• Sales Purchase Agreement or Asset Purchase Agreement.
• Signed Security Agreement or Chattel Mortgage.
• UCC-1 Financing Statement recorded at State and County.
• Settlement/Closing Statement and escrow instructions.
• Covenant Not to Compete (unless already shown in Purchase Agreement).
• Operating Licenses such as Liquor License, etc.
• Franchise Agreement, if applicable.