It is usually more difficult and time-intensive 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 generally related to the amount of collateral available to secure the loan. In other words, these types of loans are riskier to the lender.
When the seller and buyer of a business agree to move forward with their transaction, they quickly find out that pursuing financing using SBA loans is long and difficult. Using owner financing instead will speed up the process significantly, and will help both parties to get what they want.
According to leading experts, approximately 350,000 businesses are believed to be sold each year in the U.S. using owner financing. Of those, there are perhaps 245,000 that created business notes that could be sold to a company such as ours. As banks and the government continue to make it difficult for small businesses to obtain loans, using owner financing to create business notes is an excellent alternative to fill that void.