September 05, 2007 | Comments: 8
Business notes are legally binding financial agreements used between two or more parties to document the sale of a business. There is no real estate involved in these types of transactions; therefore, the actual business and business assets are used as collateral to secure the loan.
Business notes are created when a business owner provides financing to the buyer. Owner financing is particularly helpful for small business owners because it is oftentimes difficult to obtain a small business loan from conventional lending institutions.