business notes - Posted by Jake24

Posted by Anne_ND on May 04, 2007 at 12:20:08:


A personal guarantee from you will really help.
Next time you take back a note, be sure to charge an interest rate, which the IRS will impute for you, even if you don’t have one.

Call those ads I mentioned and see what a local note buyer can do for you.

good luck,


business notes - Posted by Jake24

Posted by Jake24 on May 03, 2007 at 13:07:49:

I was wondering if companies and investors also buy income stream notes. I own a advertising company and I have around $30,000 dollars from a few clients coming to me over a period of 3 years, and I was thinking about selling the notes for $20,000 cash…Could anyone show me how to set it up to attract investors concerning the interest rate, yield, etc etc? Also where would I find companies or investors that would be interested in something like this?

Re: Business Notes?! Or Accounts Receivables?! - Posted by David Butler

Posted by David Butler on May 11, 2007 at 13:40:18:

Hello Jake24,

Business notes are notes that are created when the owner of a business SELLS that business to a new owner, and agrees to carryback all or part of the financing for the new owner-buyer. These notes are secured by the assets of the business being sold to the buyer-Payor, and possible other assets as well.

It sounds here like you may be talking about income derived from invoices, or other forms of account receivables contracts of some sort. There is not a “way to set it up to attract investors concerning interest rate, yield, etc”. What you have is what you have, as you are selling or financing existing contracts. If selling, it falls under the niche of “factoring” in most cases. When factoring, the buyer will tell you what they are willing to purchase, and what they will pay for it, based on the account histories and documentation that you provide them with.

If using as collateral to finance a new loan, it is generally considered to be ABL (asset based lending), and the lender will again be dictating what they will charge in terms of rate, yield etc, based on the strength of the loan request, and assets being used for collateral.

Personal guarantees are important in business notes, factoring, and ABL financing - and are valued according to how the investor rates YOU, and the strength of your guarantee.

To find potential investors for these accounts, simply enter a search engine such as google, yahoo, or others, and enter terms such as “factors”, “factoring”, “asset-based lenders”, and similar. This should pull up a number of companies and/or experienced consultants who can assist you in pursuing the possibility of converting these income streams to lump sum cash now.

Happy Hunting, and best wishes for your success!

David P. Butler

Re: business notes - Posted by Anne_ND

Posted by Anne_ND on May 03, 2007 at 13:35:53:


Just out of curiosity, what is the interest rate on these notes?

Call the “we buy houses” ads in your local paper to find a note buyer, or sometimes they are listed as hard money lenders.

I think you’re unlikely to get such a high price on your notes (66% of face value) because these are unsecured notes and if the payor decides not to pay, the note buyer has little recourse, unless you guarantee it. The payor has a personal, ongoing relationship with you, but they would not with the new note holder.

I think you’re more likely to get something in the realm of 20%, but perhaps someone who buys unsecured notes could step in here and give you advice.

good luck,


Re: business notes - Posted by jake24

Posted by jake24 on May 03, 2007 at 14:45:40:

what kind of value do you think I would get if I personally guaranteed the notes, thats what I was planning to do in the first place, and I don’t have an interest rate on the notes.