Did you use a Seller Note Standby Period?
Hello again,
I'm helping out a self-funded search fund and I want to get a guage on how common standby periods are in seller notes. Did you use one in your deal and was it difficult to obtain?
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by an member
from University of Washington
in Mount Vernon, WA, USA
in Mount Vernon, WA, USA
1yr ago
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by a professional
1yr ago
in Crystal Bay, NV, USA
in Crystal Bay, NV, USA
Have you used ZimpleMoney to manage the accounting and payment tracking for your seller note? The system lets you have standby periods and accelerated payments.
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by a searcher
1yr ago
from University of California, Berkeley in Sunnyvale, CA, USA
from University of California, Berkeley in Sunnyvale, CA, USA
I would say it's not uncommon. On the other side, it's important to know whether and how long you need the period. Build the financial model and check whether no standby may causing negative cashflow, especially when you're also taking other debt. If that's the case you have to request the standby to make the operation sustainable.
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