| > | | | | Walk away from a business you didn't want |
| Why wait for payments on your note? | | | | without having a financial anchor still attached to |
| In many parts of the country, business owners | | | | you for the next several years |
| who sell their business must take back financing | | | | Use the balance owed to you to fund a new |
| from the buyer in order for the sale to be | | | | business, pay off debts or finance education for |
| consummated. The reason- banks and other | | | | yourself or your loved ones- now! |
| conventional lenders are hesitant to lend money | | | | Avoid the risk that the buyer will default on |
| to fund business sales because of the high failure | | | | the loan |
| rates, especially in the arena of small businesses. | | | | Avoid the risk of the buyer going bankrupt |
| Before I go further, let me ask a question- if you | | | | No need to wait for monthly payments |
| won the lottery tomorrow, would you take the | | | | If you are going to sell your business, the |
| payout in a lump sum or in monthly payments? | | | | following criteria should be structured into your |
| Most people would take a lump sum because | | | | note so that it will be more attractive to |
| even though it might be less than the total prize, | | | | investors for purchase: |
| they would have control over a large sum of | | | | Down payment of 30% or more |
| money now and could let the time value of | | | | Personal guarantee from the buyer |
| money go to work and increase their winnings.So | | | | Short term financing - the shorter the term |
| why then would you opt to get paid on your | | | | the better |
| business sale over several years rather than take | | | | Minimal seasoning of the note is needed - |
| a lump sum payout? | | | | usually two months at least, depending on the |
| The answer is probably because you didn't know | | | | type of business. |
| that you could get cash for your business note. | | | | A note for a business that has substantial tangible |
| Peacock Capital can help you to sell your business | | | | assets will be easier to sell compared to one that |
| note at a discount and cash out now, rather than | | | | does not - example: machine shop versus a |
| later. | | | | coffee stand. |
| Advantages to sell your business note include: | | | | |