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Below we have included some examples of how we can help create winning situations in the sale of businesses that would have normally stalled. These figures are simplified to help you understand the basic concepts of how we can help you find cash and sell your business quicker and more beneficially. Example #1  Your selling a coffee shop and the sale price is $100,000.
Your tired of being asked to "carry the paper" and notice that most businesses that sell around you are using some form of owner-financing to sell. You decide to finance the deal to sell your shop faster so you can move onto to your next business. A potential buyer has $30,000 cash to put as a down payment, but you absolutely need at least $50,000 in cash in order to purchase this new cellular phone business you want. In most cases this deal appears dead and you feel like your stuck, needing to wait for the next buyer. This is where Colonial Blue can rescue the deal The buyer can afford the debt service a five year fully amortized note will create: $70K @ 9%, for 60 months (5 years): ...................................$1,453/month Buyer has $30,00 but the seller needs $50,000, a difference of $20,000, how can we help? Subject to all due diligence, the secondary market vale for 16 monthly payments on this note is approximately $20,000. Our funding sources perform the due diligence now, and will fund the amount following the third scheduled payment. You would retain the payments not purchased at this time (41 remaining payments). Seller Receives:
What if the seller cannot wait for three months? It is possible for us to find a funder for a "green" note with full recourse to the seller to be released after the third payment is received. Also the seller has the option to liquidate any of the future 41 payments remaining at any time later. Example #2 You have sold your dry cleaning business last year. Your Sale price was $320,000 The Buyer but $112,000 cash down (35% down payment) You then carried the balance of $208,000 in a note structured for 7 years @ 10%, equalling $3,453/month You have already received one year worth of payments on the note. However, you recently discovered a listing for a video & camera store (a business you have always wanted to enter) for sale in a nearby shopping center.  You would like to try and purchase the camera business but the seller requires 40% down, or approximately $65,000. You don't have that kind of cash because your capital is tied up in the long term note, and the monthly payments you had received thus far have been used for other things. How can Colonial Blue help? Present note you hold ..................................... $208K @ 10%, for 84 months (7 years): $3,453/month You have received one year of payments already, so 72 payments remain. You need $65,000 to purchase the camera shop. Subject to all due diligence, the secondary market value for 23 monthly payments of $3,453 is approximately $65,000. You retain the remaining payments unsold at this time (49). Seller Receives:
Plus you have the option to liquidate the remaining 49 payments you retained at anytime in the future. Colonial Blue hopes that these examples have helped illustrate exactly how we can help you free up the capital you need for other financial opportunities. Please remember that these numbers only represent a simple illustration. The sale of each note or business varies depending on but not limited to the type of business being sold, the buyer, and the collateral of the business sale. What is a Business Note? Reasons to Sell your Business Note Determining the Value of Your Business Note Options on How to Sell Your Note so you Benefit the Most Examples of How Selling Your Note can get you the Cash you Need Questions / Request More Info Sell Your Business Note |
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