Seller Carry Back Notes   Congratulations! You have sold your business. You didn't get all cash like you were hoping, but you did get a nice note secured by the assets of your business and a personal guarantee from the buyer and spouse. Now, what are you going to do?   Do you have enough liquid cash for the down payment on a new business, to make investments or pay off personal debts? Can you borrow and use your note as collateral? Have you considered converting the note from the buyer to liquid cash?   If you are just starting to think about selling your business, and perhaps want to sell it the quickest and easiest way possible, offer to finance the purchase, and plan on selling the note after the closing. If that is your game plan, you need to plan prior to selling, or you may not have a note worthy of selling...     At the minimum, be sure to observe the following. Missing one will cost you later... Get at least 1/3 cash down payment. Be sure the buyer has a good credit rating. Be sure the buyer has sufficient funds in the bank for operating costs and reserve. Must have a personal guarantee from the buyer. Try to limit the note to 60 months or less.     For an investor to consider purchasing your note, at the minimum they will need copies of: Promissory Note Purchase and Sales Agreement Security Agreement Recorded UCC-1 (Financing Statement) Lease Agreement and Assignment Documented Payment Record Seller's Tax Returns for previous two years Settlement/Closing Statement     In addition, credit checks will most likely be done on buyer and seller for Private or government liens County and State searches to uncover unpaid debts Review of seller bank statements showing deposits of payors loan payments Written estoppel from buyer providing terms of sale and promissory note Any pending litigation and their feel for success of the business.     If you sold a bad business, consider yourself lucky! Don't plan on being able to sell the bad note that went along with it. That is part of the price you paid to sell the business. If you have a good note, there are buyers for it. They will look more closely at the business, and parties to the business than the buyer may have. If you would like someone to contact you regarding selling your note, drop us an email.     Bizology - the study of business for sale Bizology.com email to : info [at] bizology [dot] com Chambersburg, PA 17201-1712       BUYING* * FOR SALE * CONTRACTS - FORMS * FINANCIAL * REFERENCE * TAX - LEGAL * BOOKSTORE * * SELLING * | buyer questions | buyers ask | seller finance | business disclosure | seller proceeds | | information list short | business information long | records needed | seller questions | seller non-disclosure | | seller carry back notes. | seller mistakes | partner fraud | business requests | | main index | | you are in SELLING now |