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About Business Notes
What are Business Notes?
When a company is sold, either it is a cash transaction or the buyer makes installment payments to the seller. The promissory note or installment contract is the BUSINESS NOTE.
The note states that the buyer will make monthly payments, of a certain amount, for a specified period of time.
Why is there a note? Rather than pay cash, the buyer may want easy terms. This allows him to pay for the business from the income it generates, instead of using his own cash.
But what about the seller? If he has sufficient cash, then monthly payments, with interest, provide a nice income stream. What if he needs the cash, but doesn't want to lose the sale??? The seller now has the option of selling the note for cash. This gives him the freedom to sell the business now and have the cash to invest in other ventures.
If you recently sold a business and now have a business note, contact us for a quote. This would put cash in hand very quickly!