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If you have held back a note in the sale of your business you may have several questions. You may be wondering what are the advantages to selling your payments, how much cash value your note has, and what conditions on your note will allow your payments to be worth the most cash value. Colonial Blue will do its best to answer your questions and eliminate any fears you might have.

Why you Should Sell your Business Note
How we Determine the Value of your Business Note
What Type of Business Notes are Likely to Have the Highest Cash Value





How much is your note worth? Well first of all let us start by saying that each note and business is entirely unique and therefore the factors that we use to determine a value for the note vary for each situation. That being said, there is a typical seriers of factors that help us in reaching a value for your payment stream.


Here are several factors we may consider when evaluating your note:

What of Type of Business is Being
     Sold
The Success of the Business
     Before its Sale
Credit Worthiness of the Buyer(s) Payment History of the Buyer(s)
What Assets are Backing the Note The Experience of the Buyer in
     the Business He/She
     has Purchased



Please note that we may need to contact you to verify certain details about the business, such as its physical location, the amount of goods or employees involved in the sale of the business, and similar information. In order to accurately determine a value for your note we will also need a copy of the Promissary Note that was created.

During our evaluation we likely will need to see Corporate tax returns for both the debtor of the note and on the business sold, copies of the UCC-1 and Chattel Security Agreement, and Bill of Sale, basically any documentation that was created for the sale of the business. If we ask you for these additional documents please do not feel like this is any indication on the whether we can buy or payments of not. Receipt of these documents and the like are commom and usually required steps in order to determine a proper value for your note.





While Colonial Blue will search every possible avenue to get cash for your business note, there are a number of qualities to your note that will allow it to be easily purchasable and will return the most cash value.

Because there is not as much security and cash value behind a business sale as their is behind a private real estate sale the discount on the cash to payment value is understandably higher.For more information on this please visit our "Options on Selling Your Business Note" webpage.

Colonial Blue wants to make sure that you are able to liquidate your full note or part of your note for the highest possible value.

In order to do that we will share with you what aspects of the sale of your business will play a crucitial role in determining the value and purchasablility of your note.



Your note will have the greatest value if:
  • There is a Larger Cash Downpayment (30%-35%) - This means that the buyer has more personal assests at stake and that the business may have some instant equity


  • The Buyer's Credit is Decent (625 or greater) - Even if he/she wasn't able to succure a loan for the full amount and you held back a note, it is important that the buyer have credit worthiness.


  • The Buyer has Experience in the Type of Business that was Sold - This means he/she is more apt to be able to quickly get the business up and moving under new ownership


  • The Business Has Been Located in its Market for a Number of Years (3 Years+) - The longer a business has been located in a particular marketing area the more likely it is to be effective in that market. An upstart business would have the added difficulties of beginning its marketing and finding clients.


  • The Note is a First Position Lien


  • There is Evidence of Profitability - To prove that the business can and had made profits in its field


  • There is Evidence of Sufficient Financial Strength and Assets by the Debtor - This can be proved by up-to-date financial statements and tax returns






Meeting these criteria will mean that your business note is most likely to be able to be purchased for the highest possible amount. If your note doesn't not match some or all of these criteria it might very well still be possible to purchase your payments.

Call Colonial Blue today, or fill out our initial online Business Note Form to receive a quote about your specific business note.



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