Did you use a Seller Note Standby Period?

by an member from University of Washington

2 weeks ago

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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lender from St.Cyril and Methodius University

It has become very common and can be used for multiple purposes, depending on what you are trying to achieve. Feel free to DM me if you want to discuss a specific scenario.

2 weeks ago | like reply | 0 likes

lender from Eastern Illinois University

It depends on what you are trying to use the seller note for. If you are using the seller note as part of the required equity in an SBA loan process, then having a two-year standby period or two years interest only is required. You can always do multiple seller notes on SBA deals, with one on standby to meet the equity requirement and the other not on standby. If it is not an SBA loan, I see various deals getting put together. Sometimes there is a standby period, sometimes not. It really depends on what the buyer and seller agree to. If you have additional questions on seller notes you can reach me here or directly at --@----.com Good luck.

2 weeks ago | like reply | 0 likes

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