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Guidelines for Brokering Business Notes

We purchase First Liens only

Note balance must be $150,000.00, or less

Note balance cannot be more than 65% of what payor paid for the business

Note must be seasoned about 6 months, but not more than 5 years

Lease must run as long as the Note

Payor must have excellent credit rating and a very good payment record

If a married person signed the note, spouse must also have signed.

No corporate payors, unless personal guaranty

It usually takes 2 weeks to close, after we've received necessary information.

Payor must sign an Estoppel document. For information about Estoppels, click here.

Unless specifically waived, we require a $300 deposit to pay for costs of investigation, refundable at closing.

We need a number of documents from you in order to begin our investigation of the note:

Documents when the business sold:
 

  • ORIGINAL Note or Contract.
     
  • Business Purchase and Sale Agreement.
     
  • Closing / Settlement Statements and Escrow Instructions.
     
  • Proof of Fire / Hazard Insurance.
     
  • Evidence of Down Payment.
     
  • Underlying documents (if applicable).
     
  • Security Agreement.
     
  • U.C.C. (Uniform Commercial Code) Filing (State).
     
  • U.C.C. (Uniform Commercial Code) Fixture Filing (County).
     
  • Copy of Lease.
     
  • Proof that landlord approved the sale.
     
  • Bill of Sale.
     
  • Covenant Not to Compete.
     
  • Bulk Sales Compliance (or Waiver).
     
  • All applicable licenses (business, corporation, liquor, gambling, professional, etc.).
     
  • Franchise Agreement (if applicable).
     
  • County Personal Property and Real Property Tax Numbers.
     
  • Any previous names of the business in the past five years.
     
  • Proof sales tax was paid (if applicable).

    Business securing the note or contract:
     

  • Address or exact location (map helpful).
     
  • Physical description (motel, dry cleaning business, etc.).
     
  • Opinion of value / appraisal (if available).
     
  • Photographs (if available).
     
  • Promotional materials used by the business.
     
  • Equipment leases.
     
  • Seller's books and records for the two years prior to sale of business.

    Payor:
     

  • Payment record on note or contract for past two years.
     
  • Collection / servicing agent: name, address, phone, fax, and account number.
     
  • Landlord verification that rent is current.
     
  • Proof that franchise fees are current (if applicable).
     
  • Payor's financial information or financial statement (if available).
     
  • Payor's resume or biography (if available).
     
  • Payor's books and records since ownership of business (if available).

    Parties involved:
     

  • Your name, address, phone, fax, e-mail, and Social Security number.
     
  • Seller's name, address, phone, fax, e-mail, and Social Security numbers.
     
  • Payor's name, address, phone, fax, e-mail and Social Security numbers.
     
  • Landlord's name, address, phone, fax, and e-mail.
     
  • Franchisor's name, address, phone, fax, and e-mail.
     
  • Collection / servicing agent's name, address, phone, fax, e-mail and account number.
     
  • Escrow agent or attorney who closed the sale of the business: name, address, phone, fax, and e-mail.
     
  • Business broker who received a commission from the sale of the business: name, address, phone, fax, and e-mail.
     
  • Underlying lien holder's name, address, phone, fax, e-mail and account number.
     
  • Insurance agent / carrier's name, address, phone, fax, e-mail and account number.

    Don't worry if you can't find all of these items. Send us what you have and we will take care of the rest.

    We also need two signed permission forms that allow us to proceed.

    One is required so that we may contact parties involved in the creation of your note, such as the settlement agent or escrow closer. The other is required so that we may contact other parties involved, such as the servicing agent or underlying lien holders.

    Click here for the permission form. Print out two copies, obtain signatures from the note seller and return the signed form to us. If you know exactly who to contact, you may fill out the form yourself. Otherwise, provide us with the signature(s) only, and we will fill it out.

    When you have copied the permission form, click the "BACK" button on your browser's tool bar to return to this page.

    We will take these items and investigate all necessary information. If everything checks out, we will proceed to close.

    Use this practical web site to broker notes.


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    500 Wall Street, Suite 405 - Seattle, WA 98121-1577
    Voice: 206-448-1160 - FAX: 206-448-8476
    email lorelei@eskimo.com

    Larry L. Stevens, Founder and Lorelei Stevens, President
     

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