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Selling the rights of a structured settlement fund will require a process that will take time. These future payments are legally binding contracts between the original parties to the funds. Thus, it is essential that the process will be by the book. While there are certainly JG Wentworth Reviews that may question the credibility of the process, it is legal to sell the rights of the structured settlements to the company. In fact, states will have these Structured Settlement Protection Acts that will highlight requirements for the sale. Essential items must be understood before a sale must be made.

An overall understanding of the process of the structured settlements must be understood to get the best benefits. These funds are considered as a steady stream of funds that will be released to a person in the entire process. It is a tax free monetary amount on both the Federal and State areas. Unlike the lump sum funds that are availed, these are considered to have free tax liabilities. Security of potential continuous income is also a possibility achieved with the structured settlements. JG Wentworth Reviews indicates that those willing to sell their shares are those in emergency need of cash.

Structured settlements will also offer the recipient an opportunity to remove the need to worry about the funds need as monthly or annual installments will be given. Applicants on the purchase indicate on their JG Wentworth Reviews the support of the company to the process. This includes the extra services they have offered of assistance to the documentation requirements. By selling their rights to receive the funds, they are giving up their monthly installments. For many people, this will be worth it for it can be these funds that increase their future incomes by investing in other business ventures.

Legality of the funds will be further protected by the business. Online JG Wentworth Reviews claims that the steps taken by the company to ensure this will be one that is considered to be streamlined. As these are contracts, they must be taken to the court of law for approval. As these are binding contracts between the original parties, it must also undergo court amendments in order to be passed to the buyer. Judges will decide on whether the sale will benefit the recipient and will ask for the requirements of sale, the discounted values, and the possible other sources of income of the seller.

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by Herve Boinay

Mary Kramer with League CEO Dan Gilmartin


Image by Michigan Municipal League (MML)
The Michigan Prosperity Agenda is a monthly radio show that challenges listeners to help make Michigan a better place to live, work and play by creating vibrant and prosperous local communities. It will air on News/Talk 760 WJR at 7 p.m. on the fourth Wednesday of each month throughout 2010. The hour-long radio program is hosted by Dan Gilmartin, CEO of the Michigan Municipal League (the League). The show is sponsored by the League and the Michigan State Housing Development Authority (MSHDA). During our January, 2010, show, The Prosperity Agenda looked at why having better communities can help make a better Michigan. Gilmartin was joined by co-host Mary Kramer, publisher of Crain’s Detroit Business. Other guests were Peter Kageyama, founder of the Creative Cities Summit; David Egner, executive director of the New Economy Initiative and CEO of the Hudson-Webber Foundation; Joe Borgstrom of MSHDA, and Sean Mann of the Let’s Save Michigan effort (www.letssavemichigan.com). This show aired in Jan. 27, 2010, but you can listen any time here (http://www.mml.org/radioshow/prosperity-agenda.html) and here (http://www.prosperity-agenda.com) or by going to www.mml.org and clicking on the orange Prosperity Agenda logo on the right side of thepage. For details about the Michigan Municipal League and its eight assets for vibrant communities go to www.mml.org.

Getting approved for a business loan is not an easy task. There are many requirements to be met whether you are looking for a starting business loan or a running business loan. There are however, many things you can do to boost your chances of getting approved for a business loan and at the same time obtaining the best loan conditions available.

Understanding the requirements for loan approval and other additional variables that you can alter in order to increase your possibilities of getting approved is essential. Also, the difference between secured and unsecured business loans is not a mere distinction and can determine your ability to obtain finance for your company among other things.

Requirements For Loan Approval

In order to get approved for a business loan you need to show a clean credit report. If you are planning to start a new business, you personal credit score has to be in a good stance. If you need finance for your running business, your company’s credit score will be analyzed. It is always possible to act as a guarantor of your company’s loan and thus your personal credit score will be taken into account as well.

As regards to income, either your budget or your company’s budget need to be able to afford the monthly payments with comfort. This means that the loan payments must not exceed (in most cases) 30% of the overall income of your company or yours if you are starting a business.

Avoiding Delinquencies

The best thing you can do to ensure qualification for a loan is to avoid having delinquencies from being recorded into your credit report. The easiest way is of course to pay everything on time, without missing payments or paying late. However, if that is not possible for any reason, you should not let time go by without taking care of those stains.

You can always negotiate with lenders and them reporting your delinquencies or not can be part of the negotiations. Also, if they have been already recorded you can always make them rectify the situation by offering to pay or negotiate part or your whole debt. In any case, if a stain remains on your credit report the only thing than can erase it is the passing of time.

Providing Collateral

Providing collateral does always reduce the risk of a financial transaction and thus increases your chances of getting approved for a business loan. Basically, collateral implies that the lender will recover his money one way or another and thus, gives him confidence to lend money to an otherwise risky applicant.

There are many things that can be used as collateral of a business loan. You can use business assets or personal assets too. Real estate are the most common assets used to guarantee a loan. However, business loans are more flexible on this matter and can be backed up with the company’s earnings, equipment, non real estate assets like the company’s discoveries, developments, designs, etc. Anything of certain value can be used as collateral for commercial loans and lenders are very used to these kinds of transactions.

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by Herve Boinay

Dan Gilmartin on the Michigan Prosperity Agenda Radio Show


Image by Michigan Municipal League (MML)
The Michigan Prosperity Agenda is a monthly radio show that challenges listeners to help make Michigan a better place to live, work and play by creating vibrant and prosperous local communities. It will air on News/Talk 760 WJR at 7 p.m. on the fourth Wednesday of each month throughout 2010. The hour-long radio program is hosted by Dan Gilmartin, CEO of the Michigan Municipal League (the League). The show is sponsored by the League and the Michigan State Housing Development Authority (MSHDA). During our January, 2010, show, The Prosperity Agenda looked at why having better communities can help make a better Michigan. Gilmartin was joined by co-host Mary Kramer, publisher of Crain’s Detroit Business. Other guests were Peter Kageyama, founder of the Creative Cities Summit; David Egner, executive director of the New Economy Initiative and CEO of the Hudson-Webber Foundation; Joe Borgstrom of MSHDA, and Sean Mann of the Let’s Save Michigan effort (www.letssavemichigan.com). This show aired in Jan. 27, 2010, but you can listen any time here (http://www.mml.org/radioshow/prosperity-agenda.html) and here (http://www.prosperity-agenda.com) or by going to www.mml.org and clicking on the orange Prosperity Agenda logo on the right side of thepage. For details about the Michigan Municipal League and its eight assets for vibrant communities go to www.mml.org.

Starting your own company is a painful process, but also a rewarding one. The key element to remember is that if you’re new to business, the experience you gain is invaluable. The majority of new companies tend to fail if they’re not extremely lucky or based on a brilliant idea but the knowledge you gain provides you with tools for a lifetime.

The Upside

If you start a business and it really takes off, you can end up with a massive salary, much more than you can earn in a regular job. Growing a company and making money from it can be lots of fun, and you get to do your own thing.

There can be a real sense of personal freedom. If it all goes well, there is a great sense of achievement that you can’t get anywhere else.

The Downside

Many businesses fail in their first year. If you have run your own business, having to go back to a corporate job can be miserable and you might never feel like you fit in there again. It is financially risky setting up on your own – you could lose everything you have, including your friends.

This is not for somebody who likes working a regular nine-to-five job; expect to be working evenings and weekends most of the time. A seventy-hour working week is not unusual.

What type of business?

So you want to start your own business. What sort?

Sole Trading

The simplest and most common way to set up in business on your own is to set up as a sole trader. You need to notify your local tax inspector and the Contributions Agency. The tax requirements are simple, and it is easy to set up and to shut down. Financing it on your own can be difficult, and you are liable for everything if you get into debt, so your personal assets can be at risk.

Partnership

Partnerships can have full partners (who work in the business) or sleeping partners (no hanky panky, they just put in money and take a share of any profits). Working this way means that you can have more start-up money, more skills, and there is usually shared responsibility – if you are sick someone can take over your work temporarily. The downside is that if the business fails and one partner runs off, the other partner has to pay all the creditors back on their own.

Limited Company

These are the businesses with ‘plc’ and ‘ltd’ after their names. Setting one of these up means there is limited liability, so your personal assets can be separate from your business assets in most cases. You need at least one director and a company secretary in order to register the company. Then you have to provide the following details to the Registrar of Companies: your company name, registered office, shareholders, directors, and company secretary. It is more legally complicated than sole trading or partnership, taxation is different, and there is public access to accounts.

Cooperative

All workers in this set-up are entitled to a vote in decision-making, and profits are shared out equally. The amount of discussion in meetings often makes it difficult to have clear-cut plans or quick changes of direction, and group ideology may mean that the most financially rewarding options are not chosen.

Going Concern

Instead of starting a business by yourself, you can buy one that is already up and running. The assets, employees and customers are already in place, and a track record often makes it easier to raise finance. Don’t believe everything the business seller and broker tell you, get all the facts checked independently, and make sure the business will pay you a living wage.

Franchise

This is where you buy the right to market a company’s goods or services. A good franchise gives an instant market position, a well-known name, long-term support and a proven way of doing business. To check out a franchise opportunity, speak to franchisees in other areas about the business and the income – it may not match up with the figures you were originally quoted.

There are some key aspects to consider when starting your own business too, some of these include:-

Setting up merchant services with a company such as your local bank or Paypa

Is your idea something you’re interested in?

Get others interested in helping you for free with the prospect of earning eventually

Don’t spend too much, money spent does not equal money earned.

These are some elements i’ve learned in my time of running a business and hope it helps others as much as it has me.

Nick Jacob

http://www.electronicsathome.com

News, games, forums and entertainment!

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by Herve Boinay

If you are considering selling a business there are some things you can do to make the process (much) easier and smoother.   In preparation, you can certainly make your business more marketable and appealing in the eyes of business buyers.

1. Resolve any legal or environmental issues before you list your business for sale.
Selling a business is a financial transaction as much as it is n emotional one.  Buyers are skeptical and need to feel reassured when they look for a business to buy.  Talk to your lawyer or other professional advisors to see what can be done about resolving any problems before selling a business.

2. Work with a professional business intermediary.
You will certainly be glad that you did.  When you work with a business broker (or sales representative) they will help navigate you through the business sale.  Deal with a professional that focuses on businesses.  Selling a business is a very different transaction than a real estate deal.  Work with someone that knows the intricacies of the business sale.

3. Try to determine the actual market value of the business assets
Many financial institutions will look at the market value of the business assets to use them as loan collateral for the business buyer’s financing.  Try to get a sense of what the actual market value of the assets are in advance – so you have that information at hand.  The bank will typically get the assets appraised by a professional but if you have a rough idea of the value in advance then that could help you during the negotiations.

4. Be realistic about the selling price
If you are selling a business with declining sales and margins and a shrinking customer base then you cannot expect a hefty price for your business.  If you are selling a business that relies on a few key customers for the majority of the revenue and if the expertise of the owner/operator is critical to the business success then you can’t expect the same valuation as a similar business with a diversified customer base and broad-based management.  Geography counts too.  Example – a small manufacturer located in Hamilton, Ontario will likely have a high a higher valuation than one in Cayuga, Ontario (all other things being equal).  Alternatively, selling a business in Toronto in the retail sector on Queen Street will likely have a different valuation dynamic than one in St. Thomas, Ontario.

5. Claim your “cash” earnings
Contrary to the opinion of several business owners, not all businesses keep the “cash sales” off the books.  In fact, it is very difficult to sell a business that does not “claim” their cash sales. Too often, business owners decide to keep cash sales off the books and boldly declare that they in fact represent 50% of the business revenue.  These types of businesses are very difficult to find a buyer for.

6. Keep business and personal expenses separate
Try not to run ‘personal’ expenses through a business.  Businesses are valued based on cashflow and when the results are skewed by personal items it makes the book that much more suspect. Besides, Canada Customs & Revenue Agency would not approve!

7. Maximize business cashflow in the months leading up to listing the business for sale
If possible, try to ramp up the business cashflow in the months prior to selling a Business. By this we do not mean to ‘fabricate’ the paper earnings.  We mean, that if you think that the business has not running at its fullest capability then work extra hard to demonstrate the true potential of what it is capable of earning in the months prior to listing it for sale.  It is one thing to say to a buyer that a business “has potential” but it means so much more if you can demonstrate it yourself.

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by Herve Boinay

It’s an unfortunate fact that business owners sometimes have to file for bankruptcy protection. If you rely on your sole proprietorship for income, and the business isn’t generating enough revenue for you to pay your bills, you may be considering personal bankruptcy.

What happens to your business, though? Does personal bankruptcy mean small business bankruptcy as well?

If you have a sole proprietorship, then your personal finances and your business finances are one and the same. Bankruptcy does not allow you to choose which debts will be included, and which will be excluded.

Your business assets will be scheduled along with your personal assets. Since most business assets will not be considered exempt, they will become the property of the bankruptcy estate, and will be liquidated to pay your creditors.

The liquidation of your business assets will mean, in most cases, that you will have to shut down your business.

If you want to keep your sole proprietorship running, you have a couple of options. First, you can consider filing for Chapter 13 bankruptcy instead of Chapter 7. Chapter 13 does not erase your debts, but it does provide a means for you pay your creditors over a period of time, while still meeting your day to day financial obligations.

You would repay both your personal and your business debts under Chapter 13 bankruptcy, and you would be able to continue running your business.

The other option is to incorporate your business before you file for bankruptcy. Keep in mind, doing this does not automatically mean that you will get to keep your business. The ownership will still transfer to the estate when you file bankruptcy, but you have the option of purchasing your stock back at market value. If your business does not have any inventory, and most of its assets are subject to bank liens, the market value of the stock may be less than the debt repayments you’d make under Chapter 13.

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by Herve Boinay

The latest innovations in asset tracking for business owners are GPS monitoring systems.  They can be used to locate vehicles, equipment and other valuable assets around the country or around the world.  Here’s a brief look at how it works.  

GPS is short for “Global Positioning System”.  It was originally developed for military applications, but since it became functional in 1995, it has been used by civilians around the world for navigational purposes.  

Any vehicles or machinery equipped with receivers can easily be located with the help of an orbiting satellite.  Map making and surveying is easier.  Games have been created that make use of the system.  

Making use of the orbiting satellites is free for all individuals, regardless of their country of origin.  The only fees that users pay are for the receivers, which are available in a variety of formats and devices.  The receiver module itself is very small.  So, it can easily be used for all kinds of asset tracking.

One of the common uses for GPS tracking is in the mining industry.  Large operations may have equipment scattered over hundreds of square miles.  If each piece of equipment is equipped with a receiver, employees can easily locate and monitor the position of the inventory.  

Another common use is in the shipping industry.  Packages are tracked according to what truck or other vehicle they are on.  This use allows customers and business owners alike to have a better idea of when and where their package is at any given moment.

Taxis and limousines can easily be equipped with receivers.  Most large companies are already making use of them.  This allows the owner to locate vehicles quickly.  It can be used to deter theft and personal use as well.

When it comes to small business asset tracking, GPS receivers help owners save time and money.  A large company might be able to afford to “lose” thousands of dollars worth of equipment.  A small business cannot.  

As time goes by, the receivers become a real necessity.  Luckily, they are very affordable.  Prices start at under .  If you need a number of devices for your business, it’s a good idea to shop around.  Some companies offer volume discounts.     

The accuracy and speed of the devices depends on the number of channels included in the receiver.  The typical range is between 12 and 20.  If you are using the devices for asset tracking, go with more channels.  It doesn’t affect the price much at all.

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by Herve Boinay

If you are searching for information related to Asset Protection or any other such as offshore investments, llc taxes, digital asset management web or broadcast digital asset management you have come to the right article. This piece will provide you with not just general Asset Protection information but also specific and helpful information. Enjoy it.

Internal silos and conflicts between key departments (finance, IT, purchasing and contract management) primarily surrounding functional and reporting needs can grind a project to a complete standstill. There also may be multiple isolated pockets of asset management already in place at varying levels of maturity.

Much software is presently available in a market that enables efficient managing of company assets. Traditional asset management meant dealing mostly with fixed assets in every stage of life cycle. Entire infrastructure related to factory establishment comes under asset management.

Asset Management can be used for a variety of things. Most use asset management to keep track of their cash or “liquid assets.” Banking institutions are considered a form of asset management (savings accounts, CD’s, mutual funds, money market accounts, etc.) along with investments.

As detailed as this article is, don’t forget that you can find more information about Asset Protection or any such information from any of the search engines out there. Commit yourself to finding specific information therein about Asset Protection and you will.

The term asset management usually refers to the management of an investment portfolio. However, for a business, assets may include real estate, plant and machinery, vehicles, furniture, computer hardware and software besides financial assets.

Asset management refers to the method that a company or a specialized asset management firm uses to track all fixed assets such as equipment, chairs, tables, computers and technology and even building, which are owned by a company or an individual.

The services that asset management firms or asset management advisors vary depending on their client’s needs. Although these services basically have the same premise, that is to manage the asset or the money of companies and individuals, which can be done in several ways.

We discovered that many people who were also searching for information related to Asset Protection also searched online for related information such as asset management, investment news, and even remedy request management.

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by Herve Boinay

David Egner on the Michigan Prosperity Agenda Radio Show


Image by Michigan Municipal League (MML)
The Michigan Prosperity Agenda is a monthly radio show that challenges listeners to help make Michigan a better place to live, work and play by creating vibrant and prosperous local communities. It will air on News/Talk 760 WJR at 7 p.m. on the fourth Wednesday of each month throughout 2010. The hour-long radio program is hosted by Dan Gilmartin, CEO of the Michigan Municipal League (the League). The show is sponsored by the League and the Michigan State Housing Development Authority (MSHDA). During our January, 2010, show, The Prosperity Agenda looked at why having better communities can help make a better Michigan. Gilmartin was joined by co-host Mary Kramer, publisher of Crain’s Detroit Business. Other guests were Peter Kageyama, founder of the Creative Cities Summit; David Egner, executive director of the New Economy Initiative and CEO of the Hudson-Webber Foundation; Joe Borgstrom of MSHDA, and Sean Mann of the Let’s Save Michigan effort (www.letssavemichigan.com). This show aired in Jan. 27, 2010, but you can listen any time here (http://www.mml.org/radioshow/prosperity-agenda.html) and here (http://www.prosperity-agenda.com) or by going to www.mml.org and clicking on the orange Prosperity Agenda logo on the right side of thepage. For details about the Michigan Municipal League and its eight assets for vibrant communities go to www.mml.org.

Offshore asset protection is considered as a domain of only a wealthy that has a millions of protection. They believe that when it comes to money or offshore banking, they will miss their basic facet of this strategy wealthy in cooperation of wealthy or average person.

Nowadays several people are setting up an online business, they protect their business assets and income through the use of offshore company formation via are discount for security and private jurisdictions. Through this they can protect their business from predatory lawyers, governments.
The standard person has online securities and it can lose them by going bankrupt or can lose through their short case. If you pay dept securities back home and you transfer your money to an offshore brokerages account then it is consider as an overseas, therefore you will have an offshore asset protection.

It similar to the money you hold in a bank account in your home. But if encounter bankrupt because of rising energy costs and also the loss of your work then liens on your bank  accounts can rob you of your nest. So offshore asset protection is needed, as for addition, you can use an offshore company formation for example the llc or the Belize international business company, that can be consider as your offshore bank account.

In history it is common for debt ridden governments to confiscate the private gold of their citizens, So if you commit a mistake of paying with anything except from cash when you bought your precious metals, then just purchase your offshore llc or cheap Belize ibc package, in order to set up a couple of international precious metals accounts so that you are able send your money, in order to hold your precious metals safely. This will be safe diversification for your future.

Lastly, in ensuring the protection of your life and you liberty using the offshore asset protection you need to get a second passport from one of the sovereign countries that have offshore services. While in other companies they want to have thousands of dollars from you to introduce to a lawyer who can help you obtain the protection of life and liberty of their family.

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by Herve Boinay

Peter Kageyama on the Michigan Prosperity Agenda Radio Show


Image by Michigan Municipal League (MML)
The Michigan Prosperity Agenda is a monthly radio show that challenges listeners to help make Michigan a better place to live, work and play by creating vibrant and prosperous local communities. It will air on News/Talk 760 WJR at 7 p.m. on the fourth Wednesday of each month throughout 2010. The hour-long radio program is hosted by Dan Gilmartin, CEO of the Michigan Municipal League (the League). The show is sponsored by the League and the Michigan State Housing Development Authority (MSHDA). During our January, 2010, show, The Prosperity Agenda looked at why having better communities can help make a better Michigan. Gilmartin was joined by co-host Mary Kramer, publisher of Crain’s Detroit Business. Other guests were Peter Kageyama, founder of the Creative Cities Summit; David Egner, executive director of the New Economy Initiative and CEO of the Hudson-Webber Foundation; Joe Borgstrom of MSHDA, and Sean Mann of the Let’s Save Michigan effort (www.letssavemichigan.com). This show aired in Jan. 27, 2010, but you can listen any time here (http://www.mml.org/radioshow/prosperity-agenda.html) and here (http://www.prosperity-agenda.com) or by going to www.mml.org and clicking on the orange Prosperity Agenda logo on the right side of thepage. For details about the Michigan Municipal League and its eight assets for vibrant communities go to www.mml.org.

A restricted liability company is a different legal entity in its own right, as a result if a company applies for a business loan the loan contract will be among the company and the bank. The company directors will sign the contract as an officer of the company, yet if things go wrong and the company fails on any repayment it will be the company that is accused of. It will likely be the properties and assets of the company which are in jeopardy but not the personal assets of the owners.

A single trade or joint venture isn’t a separate legal entity. The proprietor or the partners and the business are dealt with jointly and the same for that reason any loan deal will be among the bank and the proprietor. In case things fail and settlements aren’t met it’ll be the operator or partners that are sued and their personal properties and assets are at stake in the process.

Whenever making an application for a business loan the process will be more or less the same, irrespective of whether the business is a company, sole trade or partnership. First of all, the loan should be for a given intent, which will vary from application to application. Whether the loan is to buy a particular asset, to be utilized as working capital to get through a tough period or to be employed to enter in to new markets will not make any big difference. The use has to be divulged to the bank.

Moreover, the company should be in a position to demonstrate that it can make the arranged payments punctually. There are numerous ways to prove the settlements can be achieved, such as old financial statements, management accounts, cash flow forecasts or projections etc. Company accounts most likely are not sufficient and the bank may need added comfort such as a certificate from a cpa. When dealing with a proprietor the bank may also choose to look at self assessment income tax returns as a proof of income.

Even if the business can readily make the repayment the bank is likely to want some type of security, which may make the form of set or suspended fees in the business assets or a personal assurance from the company directors or the owner or partners. The company owner or director needs to be ready to present some kind of security since the bank could be more likely to lend the money when the risk is shared out.

Prior to the business owner contacts the bank manager for a meeting to process a business loans application the above mentioned items have to be considered and managed. The business owner needs to be geared up along with the documentation appropriately drafted and ready to put forward the case for the loan. The business owner must look professional, behave professional and show that he truly know his thing, because this will only help the application. It is simply a case of the business proprietor selling himself along with the business.

In the event the loan have been approved it’s simply a matter of bridging the i’s, dotting the t’s and putting your signature on the legal deals. For the duration of the term of the loan the financial institution almost certainly keep track of the business’ to ensure future repayments are likely to be met. The bank needs frequent financial records and a replica of the year-end fiscal reports therefore can assist compute a selection of varied ratios and make sure the results fall in the covenants of the loan arrangement.

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by Herve Boinay

Dan Gilmartin hosts the Michigan Prosperity Agenda Radio Show


Image by Michigan Municipal League (MML)
The Michigan Prosperity Agenda is a monthly radio show that challenges listeners to help make Michigan a better place to live, work and play by creating vibrant and prosperous local communities. It will air on News/Talk 760 WJR at 7 p.m. on the fourth Wednesday of each month throughout 2010. The hour-long radio program is hosted by Dan Gilmartin, CEO of the Michigan Municipal League (the League). The show is sponsored by the League and the Michigan State Housing Development Authority (MSHDA). During our January, 2010, show, The Prosperity Agenda looked at why having better communities can help make a better Michigan. Gilmartin was joined by co-host Mary Kramer, publisher of Crain’s Detroit Business. Other guests were Peter Kageyama, founder of the Creative Cities Summit; David Egner, executive director of the New Economy Initiative and CEO of the Hudson-Webber Foundation; Joe Borgstrom of MSHDA, and Sean Mann of the Let’s Save Michigan effort (www.letssavemichigan.com). This show aired in Jan. 27, 2010, but you can listen any time here (http://www.mml.org/radioshow/prosperity-agenda.html) and here (http://www.prosperity-agenda.com) or by going to www.mml.org and clicking on the orange Prosperity Agenda logo on the right side of thepage. For details about the Michigan Municipal League and its eight assets for vibrant communities go to www.mml.org.

Business notes are used to transfer ownership when companies are bought or sold. The notes record pertinent information regarding the business including names and contact information of previous and current owner and business assets included in the transfer or used as collateral to secure financing.

Business notes are an essential element when owners engage in seller carry back financing. Owner will carry financing has become more prevalent in recent years due to new criteria set forth by the banking industry.

When business owners carry all or part of financing, buyers remit installment payments for a predetermined period of time. If buyers obtain partial financing through a bank, seller carry back contracts usually extend for 1 to 2 years. If sellers carry full financing, contracts normally extend for 2 to 4 years. Once the contract expires, buyers obtain bank financing for pay off the business note.

It is strongly advised to obtain legal counsel prior to engaging in owner will carry loans. Lawyers should execute contracts to ensure they are legally-binding and properly record transfer of property and business assets.

Business notes can consist of multiple documents. The type of notes required will depend on the type of financing used. Some of the most common include:

Sales Contract Purchase Agreement: This document is used to record details of the purchase; descriptions of transferred business assets; and contact information for every person involved in the sale.

Purchase agreements also record financing details including: purchase price, loan installment amounts and dates, interest rate, and late fees or penalties. Sales contracts should always include a default clause which details consequences if buyers default on contract terms.

Promissory Note: Records the buyer’s promise to pay, along with details of financing arrangements. Promissory notes are similar to sales contract purchase agreements in that they record purchase price, installment amounts, interest rate, and maturity date.

Lease Agreement and Assignment: This document is only required when sellers are locked into a lease agreement with a third party. Buyers assume the lease and are responsible for future payments and sellers are released from financial obligations. Lease assignments are also used when sellers own the building where business operations take place and lease the space to new owners.

Security Agreement: Records details of business assets used as collateral for financing. Details include: property descriptions, purchase price, purchase date, and each assets make, model, and serial number. Security agreements are also used to record financial obligations and duties required by both parties to commence with the sale.

Recorded UCC-1 Statement: The Uniform Commercial Code (UCC) requires this document when personal property is used as collateral to secure financing. UCC-1 statements protect sellers’ rights to reclaim property if buyers default on loan contract terms.

UCC-1 statements record property transfers including business equipment, office equipment, and personal property owned by the seller. UCC-1 statements must be recorded through the Secretary of State.

Closing Statement: Used to record the transfer of property titles to buyers. This document summarizes closing costs and records parties responsible for paying closing costs.

Documents used to record business transfers should be accompanied with financial records, current and previous years’ tax returns, and the buyer’s business insurance policy. All documents in the business notes package should be signed, notarized, and recorded through appropriate agencies.