Your Note Selling Options…
You may or may not be aware that you have options when selling your privately held note. Selling your note does not have to be an all-inclusive sale (although if that suits, it certainly can be!). As note buyers, we tailor note sales and purchases to the needs of our individual note sellers.
You have two basic options when selling your note. You can choose either a full note sale or partial note sale. There are distinct advantages to each, and the best note sale type is different for every client; the type of note sale that is right for you will depend on your goals and circumstances.
Either a full note sale or partial note sale can net fast, easy access to cash that you are owed. The difference is in how much of your note you want to sell. Largely, this depends on what you want or need to do with the money from your note-selling, how comfortable you are with the arrangements of your note agreement, and how much cash you need now to achieve your note selling goals.
Partial Note Selling
A partial note sale is one in which the buyers (us) purchase only a set number of front-end note payments. The agreed upon number of note payments will come to us until the obligation is fulfilled; after that time, payments will resume to you, and you will receive your incremental payments as before; the amount of the payment remains the same regardless of whether you or we collect it. The only difference to the note payor is where they send the check.
In return for receipt of your note payments, we will give you an upfront lump sum of cash. This is your cash to do with exactly as you please—you just get it now, in one, more manageable payment, rather than waiting to accumulate enough cash to do what you want. The benefit of the partial note purchase is that you get both the large sum of cash you need and retain rights to future income.
Full Note Selling
A full note sale is very simple and straight forward. Together, we agree on a purchase amount for the sale of your note. The note closes and you get a check for that sum—all at once, without having to wait. The payment amount and schedule remains the same for the borrower, they simply send their payments to us now instead of to you.
Full note sales are beneficial in many ways. You no longer have to worry over whether you will get your money; you have no one to chase or pursue when payments are not made; you can access cash now that you need; you get present-day money value, which in many cases is more valuable than future value; you do not have to worry that your payment schedule will outlast you; you do not have to deal with the red tape of IRS reporting; you can free up your credit and improve your credit rating; you can rest easier knowing that you no longer have to worry about that recurring payment, and that you've got your cash in hand.
There are many reasons why note holders choose to pursue note selling. We are more than happy to meet the needs of clients under any circumstance, and we are happy to assist you in evaluating your financial goals and helping you choose the note sale option that is right for you.