1. What is a privately held business note?
2. How is a note of this type generated?
3. What type of business notes do you purchase?
4. How does a typical note purchase work?
5. How do I get started?
6. Is there a fee?
7. Do I have to sell all of my note?
8. Why should I sell my business note?
9. Will selling my note effect my current payor?
10. Can I sell all or some of multiple notes at once?

What is a privately held business note?
A privately held business note is an official promissory note that a buyer gives a seller in exchange for a business.  In other words, the business owner sells the business using owner financing.  The buyer typically purchases the business with an initial down payment and subsequently pays off the rest of the business via monthly payments as agreed upon in the promissory note details.
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How is a privately held business note generated?
A privately held business note is generated when a business owner sells his or her business using owner financing.  Owner financing means the property seller, rather than a bank or other lending institution, finances the sale of the business.  During the transaction, the owner accepts a down payment from the buyer and a promissory note for the rest.  The note is structured as a contract that includes an interest rate to be paid back over an agreed upon amount of time.  A majority of the time, the note is paid back through a series of monthly payments.
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What type of business notes do you purchase?
UFS has expertise in structuring the purchase of business notes for the following industries:
  Small Manufacturing Companies
  Restuarants
  Automobile Repair And Maintenance Services
Convenience Stores
Liquor Stores
Printing And Copying Businesses
Laundromats And Dry Cleaning Businesses
Audio And Video Business
Your industry not listed here? If you are holding a note from the sell of a business, you are a perfect candidate. Contact us today for details.
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How does a typical note purchase scenario work?
UFS begins by collecting information about the business note via our Application For Business Note Purchasing, which can be download or completed online.  The application and any supporting documentation, as defined in the application, are then evaluated for purchase.  If the note is deemed ready for purchase, a quote will be submitted back to the note owner.  Once the quote is accepted by the note owner, a Business Note Purchase Agreement is completed by both parties.

As a note holder, you may terminate discussions with UFS or negotiate the process or quote at any time.  You are not obligated to accept the quote or proceed with the transaction at any point.  Only when the Business Note Purchase Agreement is agreed upon and signed by both parties is the transaction official.  UFS does not charge a fee for any services rendered prior to completion of the transaction.
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How do I get started?
You may contact one of our account specialists using our online inquiry form or via phone at 832.236.6570.  If you prefer to proceed without contacting us directly, you may download our application or complete the online application, both of which contain instructions for submitting the completed document to UFS.  Any fields left blank on the application can be completed during your initial consultation with UFS personnel.
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Is there a fee?
There is no fee for the initial process of completing the application, obtaining necessary documents related to the note, and delivering a quote for the note.  You, as the note owner, may complete all portions of the purchasing process, including receiving a quote with no fees or obligation to sell the note.
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Do I have to sell all of my note?
No, absolutely not.  You, as the note owner, may sell as much or as little of the note as you desire.  You may choose to sell only a couple of the monthly payments or a couple of years worth of payments.  Furthermore, you have the choice to sell a series of the next expected monthly payments or monthly payments from future years of the business note.  In either case, you will receive cash right now for those payments you choose to sell.
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Why should I sell my business note?
By selling your business note, you will achieve the following benefits:
  Cash:  You will receive immediate cash for your note.  That cash can be used to payoff debts, pay taxes, travel or take vacation, purchase a new car or boat, invest in a new house or piece of property, invest in a new business, or simply to take advantage of another investment opportunity.  The uses are limitless.  It is your cash, and you may use it as you please.
  More Time:  The note buyer assumes the burden of collecting payments on the note; therefore, the seller is free of collecting and the associated administrative responsibilities. 
Reduce Risk:  The risk of non-payment by a payor is eliminated.  You receive cash now for the note and no longer must worry about delinquent payments.
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Will selling my note effect my current payor / tenant?
No.  In fact, selling your note to a commercial business, such as an investment or funding company, may make things easier for your payor, as the payor may be able to participate in direct withdraw programs for payments or online billing through their respective banking institution.  In any case, the payor simply changes the name to whom the payment is written and the address to which it is mailed.
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Can I sell payments from multiple note at one time?
Yes, all or portions of multiple notes may be sold at once.  Simply complete and submit an application for each note, and UFS will coordinate the process to include simultaneous purchase of all notes involved.  While completing the applications, simply note in the note description section that you are interested in a quote that spans multiple notes.  Please contact us with further questions regarding multiple note transactions.
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