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A business note is created when the owner of a business sells that business, offering his own
financing to the buyer. This is similar to a real estate note, except that a business note is secured by
a business rather than by real estate.
It is usually more difficult to get a bank loan for the purchase of a small business than it is to get a
loan for a home or building. This can be attributed to a variety of reasons, but is most often related
to the amount of collateral available to secure the loan.
TYPICAL REQUIREMENTS
The list below provides guidelines that we utilize when deciding whether to purchase a business
note. Although we like to see all of these items, lacking strength in one area may be acceptable if
the others are especially strong.
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 Business Notes Guidlines
 Minimum 25% cash down payment by the buyer
At least two months of payments received from the buyer
Personal guarantee from the buyer and a buyer credit score of at least 650
Business is profitable
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6-year note or less, with full amortization (no large balloon payments at the end)
Business is profitable
1st liens only
In addition, the business note should be for at least $30,000
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We can purchase all or only a portion of the payments that you are receiving.
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Business Notes
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Business Owners
