How To Sell A Business Note

Selling A Business Note

You've recently sold a business that involved the creation of a seller-financed business promissory note as part of the sale.

Now you are playing bank and collecting payments every month on the note.  However, you decide you would rather have a lump sum of cash up front instead of waiting for your money over the next so many years.  Now what?

Steps To Selling A Business Note

Once you decide you would like to sell your business note, the following steps are what you can expect to have to go through to get the cash you want from your note.

1. Find a business note broker.

There are many people out there who are earning money finding people with business notes for sale and matching them up with funding sources.

Funding sources are the businesses that actually underwrite and fund the note purchase.  They are the business promissory note buyers.

The note brokers simply earn a commission for referring business note holders.

2. Submit whatever information is required by the business broker to generate a quote for your business note.

Once you submit this information, you should be able to receive a quote for your note (assuming your note is even quotable) within a couple of days.

3. Assuming you accept your business note quote, the next step is underwriting.

You will be asked to submit a series of documents that the business promissory note buyers need to verify the information you submitted.

4. After a couple of weeks (on average, depending on how quickly documents during the underwriting process are gathered and submitted), a closing date and time will be scheduled for the signing of closing documents.

5. Obtain your money.


Related Articles:

Introduction to Seller Financing

Find out what seller financing is and why is it used.

Reasons to Buy and Sell Business Note Payments

Learn the reasons why people choose to purchase and sell business note payments.



 

 


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Selling A Business Promissory Note