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Buying And Selling Blog > Buying Selling > Buying And Selling Cash Flow Notes
Find Out How To Make Money Buying And Selling Cashflow Notes
purchase.
• The note should have a minimum face value of $15,000.00.
Structuring the Sale
There are a number of ways to structure the sale of your business note. You can sell the entire note, or only part of it. The most common way to sell a note is through a "partial purchase," which involves selling only a certain number of the remaining payments on your note.
Note buyers can purchase any number of the remaining payments in a variety of ways. For example, let's say you have a note with a balance of $80,000 payable in 240 monthly installments. If you need just $20,000 now, for whatever reason, the note buyer would calculate how many payments would need to be purchased to provide you with that specific amount of cash. Exactly which payments would be purchased would depend on your personal financial situation. You could sell:
• A certain number of the beginning payments on the note. (The note buyer might purchase the first 60 payments, and then you would receive the final 180 payments.)
• A certain number of the final payments on the note. (The buyer could purchase the final 180 payments, passing the first 60 payments through to you.)
• A certain percentage of each of the remaining 240 payments on the note. Perhaps 50 percent of each of the 240 installment payments could be purchased. (You would receive one half of each of the 240 payments.)
So which option in the above example would be best for you? It would depend on your Previous Page <<< >>> Next Page
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