How Sell a Business Promissory Note

• 1). Obtain a cash purchase quotation. You can get cash purchase quotations through a note broker. Note brokers are professional brokers who facilitate the sale of promissory notes between individuals and/or investors. These brokers have the experience necessary to obtain the best price and execute a smooth transaction. They also have a large database of potential investors.
  
  
• 2). Hire a note broker, or offer the note directly to a professional or private investor. Most promissory note holders use a note broker to sell their business promissory notes, but you can sell your note directly to either a professional investor or a private investor. One big advantage of using a note broker is that he will have experience in the sales process and will be able to qualify the buyer. If selling the note directly, you may list your promissory note on the Internet.
  
  
• 3). Qualify the buyer. Whether the buyer is an individual investor or a professional investor, he should demonstrate an ability to pay. Whatever the terms of the sale, the note will be checked for accuracy and legality. Likewise, buyers must establish their ability to proceed from the offer to the "net-cash-to-you" quote. A net-cash-to-you quote means the amount of cash the seller will realize at the conclusion of the transaction.
  
  
• 4). Set the note for due diligence analysis, which entails validation of the note, lien check and examination of all pertinent documentation. This due diligence will be conducted by a note funding process service and will assure the buyer the note is legitimate. After passing due diligence, the note will be cleared for the purchase process to proceed.