This year, some 700,000 American businesses will be sold. Most will be small andmid-sized businesses like yours. If you, too, are thinking of selling, consider thesepractical steps for making the process go smoothly.

Determine a Realistic Price Range

Understand the Tax Consequences

Prepare for a Sale

Seek Potential Buyers

Negotiate Your Deal

Sign a Sales Agreement

Plan for the Closing

File Paperwork With the IRS

Now for the GOOD STUFF!

Getting the Cash Out of your Business Note, known more specifically as sellercarryback business notes, are created when the buyer of a business can not or willnot pay all cash. Frequently, banks and similar lending institutions are hesitant toloan money to new business owners who have minimal track records and wherehard assets make up a small percentage of the total purchase price.

In the case where a buyer cannot obtain a loan, the seller is left with two choices (1)hold off until he/she find a buyer who can pay all cash or (2) carry back a note inorder to collect future payments. The first option is often not realistic. In the secondcase, the seller is hopefully able to at least extract a large down payment to makeextra sure that the buyer has some "skin in the game". However, even then the selleris usually in a position that he prefers not to be in - he has no lump sum of moneyto either invest in other opportunities or to retire. Unlike a real estate note, where isthere is a hard asset that is fairly easy to appraise; the business note is relativelyrisky to hold.

So, what is a business seller to do when he didn't want to be in the lending businessto start with and now has a need for immediate cash? What many people don'trealize is that the business note can be sold. The former owner can sell all or part ofthe note to get a lump sum of cash. In this way, both the goals of selling thebusiness and getting the cash out of it are met.

In summary, selling a business note is an excellent way for the former owner of abusiness to get his cash out of the business. Whether the reason for selling the noteis that the seller would have preferred all cash all along, that he now has large debtsto pay, or that he has the opportunity to pursue other investments, the sale of abusiness note is a tool of which you should always be aware.

Afra AmirSanjari is the Principal for Peacock Capital. Peacock Capital specializes insolving the cash flow challenges of Small/Medium Businesses, Government Vendorsand Individuals with innovative financial solutions by providing a network forsecuring operating capital.

http://www.peacockcapital.com;info@peacockcapital.com