The process of selling your business note involves a series of steps that generally take 3 to 4 weeks to complete. A chronological outline of the steps necessary to sell a business note is presented below.
My grandfather had recently passed and my Grandmother needed the cash up front and didn't want the burden of holding a mortgage. The price we received was much higher than other companies. They personally helped every step of the way and made it easy for me and my Grandmother. Settlement was a breeze as well... Thanks for all of the help and a quick turnaround!
Step 1:
The business note holder begins their initial exploration into the possibility of selling their business note.
Step 2:
After speaking with potential business note buyers, the business note holder makes their decision about selling their business note, selects the best sale option for them, and chooses the business note buyer company they wish to do business with.
Step 3:
The business note holder and chosen business note buyer enter into a purchase and sale agreement for the sale of the business note. The agreement will contain the sale price, the number of payments sold and who will be responsible for the expenses necessary to close the transaction.
Step 4:
The business note buyer will conduct their due diligence necessary to complete the transaction. The due diligence process normally includes the following:
All pertinent documents will need to be reviewed, including the business note, security deed, and the settlement statement from the sale of the business.
A credit report on the borrower will need to be reviewed.
The business note holder will provide a twelve month payment history on the business note, along with evidence when the payments were received.
An estoppel letter will be sent to the borrower verifying the business note terms and the current outstanding balance on the business note.
Step 5:
When all of the due diligence has been completed by the business note buyer, the closing can be scheduled.
Step 6:
At the closing the business note holder will sign the closing documents and surrender the original business note.
Step 7:
Last but not least, the business note holder will receive their sale proceeds from the closing agent via wire transfer or certified check.
These are the typical steps necessary to sell a business note. Every business note is unique and therefore every transaction will be unique.
Dear John, The closing went very well and we couldn’t be more pleased. Selling our note will help with so many things. We appreciate how quickly you were able to close our transaction and how honest you were to work with. At our age working with someone over the internet was a bit scary, but we made the right choice and couldn’t be happier. Thank you.
