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. Seascape Capital is able to buy both real estate notes and business notes.
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.
The list below provides guidelines that we utilize when deciding whether to purchase a particular 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.
BUSINESS NOTES GUIDELINES
- Minimum 25% cash down payment by the buyer
- At least three months of payments received from the buyer
- Personal guarantee from the buyer and a buyer credit score of at least 650
- Business is profitable
- 6-year note or less, with full amortization (no large balloon payments at the end)
- 1st liens only
- In addition, the balance remaining on the business note should be at least $50,000
Our investors can purchase all or only a certain number of the payments that you are receiving.
Start by filling our our easy online form.