NCC
is an industry leader in all forms of seller financed business notes,
corporate buyouts, partnership buyouts, etc. Ed Lisogar has literally
written the book on the subject, "The
Business of Business Notes", as you can see at the "Instructional
Manuals" page at this site.
Please
Note: As of
January 2005, our typical maximum investment into any one business or
corporate transaction (where there is NO real estate involved as collateral)
is approximately $200,000 to $300,000. However, please note we are just
as interested in smaller "Ma and Pa" transactions as we are
in multi million dollar deals. Our minimum investment is generally $8,000
to $12,000, all things being equal.
Business
Sales w/ real estate:
Investments into notes created through business sales where real property
WAS included as collateral will be discussed on a transaction by transaction
basis. Head for the Worksheet page at this site. Complete and submit
a Business Note worksheet outlining all details INCLUDING the value
of the real estate included in the overall sale.
While
we typically require minimum levels of cash down payment, equity stake,
seasoning, personal obligation, etc. as outlined in the underwriting
criteria below, we consider each transaction on it's own individual
terms and strengths.
Every deal is reviewed
on a transaction-to-transaction basis. A brief e-mail is the way to
get started.
Several different
programs are available to pull capital out of the note in question.
A full liquidation will always be the worst way to go as the discounts
inherent to this area of the secondary market are large. Please inquire
as to the options available such as a "partial" or "split
payment purchase". NCC's "Three Way Program" is highly
recommended on business note quotes…Let NCC's team of negotiators
give your deal the greatest chance of closing
Should you have
a business or corporate note that you would like to submit for review,
please check your specific deal against the underwriting criteria below
to ensure it meets minimum requirements. Submit utilizing the Business
Note Worksheet found at this site.
TYPICAL BUSINESS NOTE BUYING CRITERIA
No "Simultaneous Closings"
3 Timely Payments Required
Minimum 650 FICA credit score on Buyer(s)
Promissory Note must be personally guaranteed by Buyer(s)
Yields Starting at 20%
"Typical" Minimum: $12,000
30% cash, "out of pocket" down payment (versus borrowed or financed) …Will consider less down if well seasoned…call to discuss
Same location and proof of business profitability for three years*
Two years of corporate tax returns/year end profit & loss statements on business and Debtor
Confirmation that buyer had previous experience in the business in question
All business note submissions are subject to underwriting approval, and are reviewed on a transaction by transaction basis.
* Food service businesses (restaurants, bars, deli's, etc.) require at least four years minimum operation at same location, same format. Certain exceptions may apply (sizable cash down, longevity at existing location, etc.). Call to discuss.
Questions or comments?
Click
here to email National Capital Corporation.
