"After all, the chief business of the American people is business."

~ Calvin Coolidge

Seller Financed Business Notes

When a business owner decides it's time to sell their business and move on, that transaction can take many forms.  In many cases, the seller may find that their best option is to provide financing for that note, and take periodic payments from the new owner(s).  If this is the situation that you are currently involved in, there is another option.  Just like any other promissory paper, business notes can be sold in favor of a lump sum of cash.  In this case, what serves as collateral for the note is inventory, equipment, property (if any), reputation, and stability.

Flexibility:  There are many benefits to selling your note, quite possibly, the most attractive being the flexibility you have in how you sell.  Options include...

• Full Sale - Sell the entire note for a lump sum of cash.
• Partial Sale - Sell part of your note, while keeping the rest of your investment.
• Future Payments - Sell future payments while still receiving current payments.

Typical Candidates:  There are many varieties of businesses in the marketplace, and as a result, the make up of each transaction can vary widely.  Not all businesses can qualify, though many can.  Below are the most common types of businesses that can qualify:

• Auto Repair Shops
• Convenience Stores
• Laundromats
• Liquor Stores
• Manufacturing Companies (Small)
• Restaurants
• Printers
• Essentially, businesses with physical collateral are usually better suited.  However, other types of businesses with attractive potential may also qualify.

The Principle of Selling Notes

The principle is simple, working with a Certified Cash Flow Consultant (CCFC) you will be matched with a suitable funding source with an interest to buy.  The specifics of each case varies, however as an overview, the funding source will make an offer to purchase the note at a discount of the full face value.  In essence, the funding source is investing in the note.  Investing in a business note is more risky than other types of promissory paper, and this may be reflected in the discount.  One thing to consider is that the risk of the note doesn't discriminate, it's the same risk for you as it is for the funding source.  Opting for a lump sum of cash now guarantees that you will get that amount out of the sale of your business.  From that point on the burden of the risk shifts to someone else.

The value of cash assets depreciate over time due to inflation, so for many note holders, gaining the ability to access that cash and respond to changes in the economy means greater investment or purchase power by comparison.  That cash leverage is the key to "turning promises into profits".

How can you benefit by accessing that cash now?

• Release of a Burden.  What was originally the best financial decision, may not be the right position to be in over time.  If that's the case for you, consider what selling your note can mean.
  • The risk of non-payment, or late payment is erased.
  • Collecting on monthly payments is eliminated.
  • Immediate cash.
• Capital for re-investment.   
  • Take advantage of new, profitable business opportunities.
  • Expand and/or diversify your investment portfolio.
• Cash in a lump sum rather than monthly income, whatever the reason.
  • College tuition.
  • Personal debt.
  • Travel.
  • Health care.
  • Open another new business.

FREE CONFIDENTIAL Analysis

If you are intrigued by the prospect of what an infusion of cash can do for you, then submit an Information Form to CapSource Funding for review.  Learn how you can turn your promissory paper into profit.  Your request will be analyzed by a Certified Cash Flow Consultant (CCFC)*.  There is no obligation, and the process is quick, easy, and confidential.

* Find out how to obtain a FREE analysis...