Many individuals opt to sell promissory note in order to take advantage of the benefits of a lump sum of money. Although steady, smaller monthly payments work for some people, others feel a larger up front amount affords more opportunities as far as investments and purchases are concerned.
Promissory notes can be any debt instrument whereby one party agrees to pay another party for the sale of a piece of property, a business, even an automobile. Often the bulk of the agreement involves a monthly payment at a set interest rate over a period of several years.
But what happens if you find yourself in a position where you need cash now? That's where selling promissory notes comes into play. You might come across an amazing investment opportunity that a friend told you about. Maybe you have a wedding coming up. Perhaps you want to pay off that big high-interest debt you've been carrying since college.
Whatever the case may be, you can sell promissory note of any kind for a lump sum of cash to a professional note buyer. These are seasoned professionals who purchase debt instruments of various kinds: mortgages, business notes, structured settlements, annuities, land contracts, etc. Using various criteria they are able to quickly come up with a valuation for your promissory note, and you can decide what's best for you.
What are your options?
Well when it comes to selling promissory notes, you can sell the entire paper or just a portion of it. If you need the maximum amount of money now obviously it makes sense to sell the note in its entirety. However, if you need a smaller amount, it might behoove you to sell just a portion of the payments, called a partial, and retain the remaining payments after the ones you sold are paid off.
With a partial you sell promissory note for "x" number of months and then resume receiving the monthlies after this time. You can also split months, so you receive half and the buyer receives half; a professional note buyer can go over all of these options with you.
How much you will receive will depend on the balance remaining, any balloon payments, interest rate, payor stability and a number of other factors. It helps if you have all of your paperwork in order and you keep careful records when it comes to selling promissory notes, as it will be helpful to the potential buyer.
Just make sure you find someone who is reputable and experienced, and go over all of your options before you make a decision.
Jamie has been working in the finance industry for many years and is a contributing editor to Find out how to sell promissory note and get a quote from a seasoned note buyer on our site.
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