1. Seller receives an effectively higher price when calculating in the interest payments on the note.
2. Creates an annuity stream for the seller, a necessary money management tool for many.
3. Potential tax advantages for the seller (see CPA) by deferring income.
4. Creates full security and collateral for the seller; there's usually no security left when subordinated and on standby to the SBA.
5. No lender and extra third party fees to the buyer, which equals more working capital, down payment, etc.
6. Buyer may put more money down, which equals more buyer commitment.
7. Seller has choice to sell the note later on the secondary market, if needed.
8. One less hurdle (third party) in the way to get deals closed much faster.
9. Shows the buyer the seller's confidence in the future longevity of the business, gaining more buyer confidence too.
10. Shows agents and brokers who the motivated sellers are; which is what we want and need.
It seems that we are continually dealt with negative scenarios like the recent lending activities (or lack thereof). Sellers that carry paper are more likely to close deals faster, with less headaches and benefiting all parties involved.
