Attn: Business Brokers

Increased Profits Through Seller Financed Transactions

“Understanding the options will improve your bottom line”
“Understanding the different ways that business notes are bought and sold can close more deals each year and put added cash in your pocket. Discover the untouched gold mine in your office’s filing cabinets. Introduction to several creative options that provide your selling clients with the capital they NEED. How to structure your client’s note ensuring salability in the eyes of the secondary market”


Seller financing is typically required in our industry. Every year millions of dollars in business notes are created nationwide as buyers cannot arrange traditional financing and sellers are forced to carry the “paper”. 80% of the small business sales in this country are seller financed.


Business brokers across the country receive calls regularly inquiring if they know anyone that might buy their business note. They are also sitting on a “gold mine” of files full of previous seller financed transactions.


Most brokers know these notes can be bought and sold but do not realize the income they’re missing by not having an associate company that they can feel confident referring their clients to…until now.

APB Capital Funding of Atlanta, GA is a national investor of various forms of income streams on a nationwide basis. We buy “paper” secured by (but not limited to) real estate, business notes, raw land and commercial properties. We also buy business notes nationwide.

Why is it crucial  that you get to know APB Capital Funding?

Hundreds of millions of dollars in privately held, seller financed business notes are in existence as we speak. More are created by the hour. Most sellers are entrepreneurial, selling one business to invest elsewhere, possibly another business venture. Eventually, the majority of these noteholders have a need for the capital that’s tied up in their note. These sellers are motivated.

You were there for them when they needed to sell the business. It’s only natural that they would trust your judgement in their attempt to receive their capital out of the note now, and not have to sit on years of smaller monthly payments.

  1. Close more deals as you help supplement the cash down received at closing. A buyer may have $50,000 cash to put down…but a seller may actually need $70,000. The buyer cannot come up with the additional $20,000…the deal died. How many times have you been in the middle of THAT scenario? Our company can supplement the missing $20,000 through a partial liquidation of the new note following a minimal seasoning period (2-3 months), subject to all due diligence and underwriting criteria.
  2. A past client that has carried the financing on a deal you previously represented him on is a perfect candidate for one of your present listings. Problem? His capital is tied up in the seller financed note. By allowing APB Capital Funding to demonstrate the various options that are available to your clients, we can the help client get liquid. A client with cash is now in a position to buy one of your listings. What does that mean to you? Another closing and…
    another commission in your pocket.

APB Capital Funding IS NOT A LENDER!

APB Capital Funding provides supplemental cash through the liquidation of existing  seller financed notes…

Buyer credit scores

Cash equity at closing

Buyer experience in this type of business

Longevity of the business at its present location

Historic income and expense of the business in questio

Seasoning on the note being sold (pay history)

Personal or corporate obligation on the note

Why are the discounts so high in the business note arena?

Business notes are one of the few note types for which there are very few buyers. Most paper investment companies will not touch a true business note (no real estate involved as collateral) as they are considered too risky. In most business sales, less than 20% of the value of the business is rooted in tangible, foreclosable assets (the other 80% being the goodwill of the clientele).  In the event of default, we rarely ever recoup our full investment which is why the secondary market attaches such a high “risk value” to business notes. The comfort level we look for is equity, in the form of the down payment at the time of the sale, seasoning (or payment history) and payor credit. For a business note to be salable it typically requires 25%-30% cash down, it must be in first position with very few exceptions, approximately 2-3 months of seasoning and strong personal credit on the Payor, as well as requiring a personal guarantee from the Payor.

Additionally, the time remaining on the note has a direct effect on the value of the remaining payments. The longer we must wait for the return on our investment, the less valuable the note is in today’s dollars. Every day that goes by, inflation, cost of living, etc., reduces the buying power/value of the monthly payment. As a result, a noteholder that fully liquidates all of his remaining payments will realize the largest discount in the secondary marketplace.

APB Capital Funding recognized the need to provide noteholders with alternative avenues to draw capital from their business notes without giving away the farm through a total liquidation. The result are two creative programs.

The first is known as a “partial”, whereby noteholders can utilize their note to receive the cash they need now, and retain income from future payments yet to be received.

The second is a “split payment program” where clients can generate a lump sum now and still receive monthly income. While the majority of our clients initially express an interest in “washing their hands of the note” entirely, a full 85% eventually opt for a partial or a split. This is particularly attractive when a noteholder has a large balance owing, a large balloon or an extensive number of payments remaining.

By liquidating just a calculated number of remaining payments, the noteholder can receive exactly the amount of cash he needs right now, retain future income from the payments not assigned plus the option to repeat the program again in the future. Better still, assuming all pertinent documents are properly recorded there is no cost to the noteholder. Liquidating the entire note is the worst possible thing you can do and would be the hardest to underwrite. Unless your clients are in a position where they need to raise as much capital as possible, the partials or splits will always be a stronger avenue.

Okay, I’m hooked. How do I make money with APB Capital Funding ?

#1   Pending deal

You have client selling a bagel shop.  

Sale price is $200,000. Seller is tired of being asked if he’ll “carry the paper” and realizes he will have to finance the deal in order to sell the business and move on to his next investment.

Buyer has $40,000 cash to put down.

Seller absolutely has to have $80,000 as a down payment for a new business he’s buying.

In many cases the deal has run head on into a brick wall…and there it sits.


The business can afford the debt service a six year (72 month) fully amortized note will create:

$160K @ 9%, 72 months: $2,884/month
Buyer has $40,000, seller needs 80,000…we’re short $40,000…how can we help?

Subject to all due diligence, the secondary market value for 16 monthly payments is approximately $40,000. We’ll perform our due diligence now, and fund following receipt of the third scheduled payment. Seller retains the payments not touched at this time (53).    Seller receives:

Cash at close:                                              $40,000
First 3 payments: $ 8,652
Cash from the note sale: $40,000
Future Cash retained (53 payments): $152,852

Total income from the sale:                     $ 241,504

What if the seller cannot wait three months?  We will consider doing a “green” note,  to be released after the third payment is received. (Call us to discuss the particulars.)

Best of all the seller can liquidate the remaining 53 payments retained at anytime in the future.

#2   Previous deal that closed with seller financing

You have client that sold a dry cleaning establishment last year.

Sale price was $320,000.
Buyer contributed $112,000 cash down (35%).
Seller carried the $208,000 balance for seven years @ 10%, $3,453/month

Seller has received one year of payments on his note. He has recently received one of your listing flyers and is interested in another dry cleaning establishment you have listed in a new development across the city (that and he’s driving his wife nuts being home everyday since the sale…).

The seller on the present listing will carry the financing as long as he can get the equivalent of 40% down, or approximately $65,000. He doesn’t have the cash because his capital is tied up in the long term note. Seller wants to know if “…you know anyone that would buy his note…”

How can APB Capital Funding put this deal together?

Present note:  $208K @ 10%, 84 months: $3,453/month
Seller has received one year of payments, 72 remain
Seller needs $65,000

Subject to all due diligence, the secondary market value for 23 monthly payments is approximately $65,000. Seller retains the payments not touched at this time (49).   

Seller receives:
12 payments rec’d to date:                           $ 41,436                                            
Cash from the note sale:                               $ 65,000
Future Cash retained (49 payments):         $  169,199
Total income over the life of the note:       $  275,635*

Best of all the seller can liquidate the remaining 49 payments retained at anytime in the future.

* Present balance on the note is $186,390…receiving over $100K on balance plus required $65,000

Broker has structured a creative option to traditional financing and pocketed another commission!

#3   “…There’s GOLD in those filing cabinets…”

As discussed, past clients that have sold businesses through your company are prime candidates for many of your present listings.

Problem:     Cash is tied up in the note they created when they sold with seller financing!

Solution:    Introduce them to the creative options available through your associates at APB Capital Funding.

A few helpful resources:

If you have any questions don’t hesitate to shoot us an email through our contact page (or setup a time to ‘chat’with us).