I'm about to sign an LOI and there is one sticky point that seems to be an issue that could derail the deal. The vendor has 2 friends who sold their businesses and for some reasons never received the money from the seller's note. For that reason he was unwilling to do a seller note at all, but has since changed position and agreed to a 25% seller's note.

However, he is very worried and wants some kind of insurance or guarantee he will touch the seller's notes. I'm in Canada and he's asked to have the seller's note guaranteed by EDC (Export Development Canada). Apparently they have a new product, an insurance, to cover seller's notes. It's been officially announced, but it's not in place yet, no one knows when it will be or how much it will cost.

I don't want to delay this deal by a few months just to wait for this product to come out and I'm not sure I'm willing to pay an insurance for the seller's note either. So I was wondering if any of you have faced this before and if you seen creative solutions to solve this problem?