should I sell my business note ?
you enjoy receiving your periodic payments and do not need cash, then
you probably do not want or
need to sell your note. But what if you are in need of immediate
cash? Many people find themselves in
a situation where a lump-sum of cash is either necessary or highly desirable
. . . to pay off bills, debts,
taxes, divorce settlements; to start a new business, invest in a new
project, or pay for college; to buy
a new house or take a special vacation.
a business note is not as secure as a real estate note. The chances
of a business going under are
much higher and the chances of recovering your money is much lesser
and is much more painful!!!
Is selling my business note legal?
It is completely legal. Corporations and small businesses have
been buying and selling
businesses with seller financing for decades. We work with a variety
of funding sources, nationwide,
who buy privately held business notes. HB Capital Strategies
will help you find the funding source
that will pay you the maximum for your
note / income stream.
Is selling my note like getting a loan?
NO! This is
definitely not a loan. You would, in fact, be selling
your note (or a portion of it) and there
is no recourse to you for any reason.
How much can I get for my note?
current value of any note is generally based on: the collateral securing
the note (if any), the
number of remaining payments, the interest rate (if any), and the credit
worthiness of the party
making payments to you. Contact HB Capital Strategies to
discuss your note and get an idea of
your note's value.
What happens if the business note payor defaults or is late making
this is not a loan, the funding source assumes all risk for the entire
note (or that portion you
sell to them).
You have absolutely no responsibility or liability. So, once you sell
the note, you
can stop worrying about what happens to the business!
What costs or fees would I, the seller, have?
In many cases, NONE! Depending on the quality of the note, most
costs, including any legal fees, are
paid by the funding source. There may be no out-of-pocket costs
to you, the note seller. The amount
offered and accepted by you, for your note, is the actual CASH amount
you will receive at closing.
How long does it take to close the deal and receive the lump-sum
The whole process is very simple and straight forward and once all the
necessary documents have been
examined, prepared, signed and are in place, the transaction is
concluded. This usually takes between
two - three weeks, sometimes, even faster.
Should I talk to my attorney and CPA?
Of course! You should talk
to anyone you feel comfortable with, including your financial planner,
tax advisor, banker, and/or attorney. Feel free to have them contact
us if they have any questions