What is seller edge
Providing Liquidity for an Overlooked Asset Class
Seller Edge Capital is a private fund that specializes in the acquisition and purchase of small business promissory notes, nationwide. Seller Edge Capital is powered by a credit platform purpose-built to provide liquidity for your small business note which in turn will unlock value from seller-financed business transactions, without having to wait months or years for repayment. Backed by decades of credit, and note trading experience, we bring institutional discipline, proprietary sourcing, and AI-enhanced underwriting to a fragmented market—delivering liquidity to sellers and double-digit yields to investors1,2,5.
Are you collecting on a small business note?
Unlock Liquidity from Your Note—Without Waiting Years
If you’re holding a seller-financed business note, you don’t have to wait 3–10 years to get paid. We can provide immediate liquidity options today. Seller Edge can offer an all cash purchase or a hybrid option of an immediate lump sum of cash and a portion of our fund’s shares—so you can access capital today. Complete our quick, online form to get a quote and explore your options now.
What is a seller note?
A Common Financing Layer in Small Business Transactions
Small Business Notes or Seller Notes are loans in which the seller of the small business finances a portion of the purchase price of the business to the new buyer in exchange for a down payment and payments made over time with interest. This is commonly used when buyers cannot secure full bank financing in order to complete the sale of the business, due to a lack of small business loan products within the greater banking market. Seller financing is very common in business sales under $100M and in transactions in the sub $20M range, with an emphasis on most loans being first lien assets. Almost all notes are amortizing, with a typical repayment schedule over a 3–10 years bearing a market-comparable interest rate. Sellers are often stuck holding illiquid, non-tradable notes stranding their value.
Seller Note bridges buyer financing gap
Seller takes on risk, waits for payout
No liquid market for these notes
Clear Criteria: Terms, History, Underwriting, and Documents
Selling a business note is easiest when the basics are clear. As business note buyers, we focus on a few core criteria to evaluate note value, pricing, and execution certainty.
To get started, we typically review:
- Note Terms: balance, interest rate, amortization schedule, and remaining term
- Payment History: on-time payments, missed payments, and current status
- Borrower profile: business performance and ability to repay
- Collateral & Guarantees: secured vs unsecured notes, personal guarantees, and lien position
- Documents: promissory note, purchase agreement, amendments and supporting statements
This underwriting process helps us make an accurate offer and move quickly toward closing.
Performing Notes with Strong Cash Flow
Performing seller-financed business notes are often the most straightforward to purchase because they provide predictable income and lower risk.
Performing notes are typically defined by:
- Consistent payments and clean history
- Stable cash flow and manageable debt obligations
- Clear terms and documentation
- Realistic principal/interest payments and market-aligned interest rates
If you’re collecting consistent and steady payments today, you may be able to sell your business note for a lump sum and reinvest that capital elsewhere.
Collateral-Backed Notes (Real Estate When Applicable)
Some business notes include additional security. Collateral can reduce risk and improve valuation, especially when the note is backed by real estate or other pledged assets.
Collateral may include:
- Business assets tied to the financed deal
- Real estate collateral (when applicable)
- Guarantees and enforceable agreements
A collateral-backed structure often increases confidence for both the note buyer and the seller.
How Is a Business Note Offer Price Calculated?
Business note pricing isn’t random — it’s based on cash flow, risk, cost of capital and the time value of money.
Your offer is typically influenced by:
- The reliability/predictability of future payments
- The interest rate and remaining term
- The borrower’s financial strength
- The financial health of the business
- Collateral and enforceability
- Overall risk and market demand
If you want a faster sale and a cleaner transaction, clarity beats complexity every time.
What Our Underwriting Reviews Before Making an Offer
Our underwriting process is designed to be efficient, consistent, and transparent — so you know what matters before you submit.
We review:
- Payment history and note servicing records
- Note terms, amortization, and remaining balance
- Borrower and business fundamentals
- Collateral, guarantees, and lien position
- Documentation quality (promissory notes, agreements, statements)
Once reviewed, we can provide an offer based on the structure and risk profile of your business note.
Valuation Factors: Risk, Cash Flow, Collateral, and Terms
When you sell a seller note, valuation comes down to one thing: how predictable the payments are and how secure the transaction is.
Key valuation factors include:
- Cash flow: consistent income stream and payment reliability
- Risk: borrower stability, business performance, and default likelihood
- Collateral: secured notes often carry more security and better pricing
- Terms: interest rate, amortization schedule, and remaining duration
- Deal structure: down payment size and original financing setup
The stronger the structure, the more competitive your offer can be.
Quick Checklist: Documents, Terms, and Payment History
To get a quote from business note buyers, you don’t need a full data room — but a few basics help us move fast.
Quick checklist:
- Promissory Note (aka Business Loan Agreement)
- Asset Purchase Agreement
- Payment History / Servicing Summary
- Closing Statement from Sale (needed to verify down payment at time of sale)
- Collateral and Guarantees (if applicable)
Submit what you have — we’ll tell you what’s needed next.
Tip: A Down Payment Can Improve Your Note Value
In many seller-financed business deals, a stronger down payment reduces risk and increases confidence in the borrower — which can support better pricing when you sell your business note.
Even if your note is already in place, clean payment history and clear documentation can help improve your offer. Just be sure that the buyer’s down payment is NOT borrowed capital. It must be capital used that is not leveraged otherwise it puts your note at risk of becoming a 2nd lien which means less money as an offer.
How selling your note works
A Simple Process to Unlock Capital from Your Seller-Financed Deal
Selling your business note doesn’t have to mean waiting years for payments. With Seller Edge, you can turn your note into immediate liquidity — without the complexity. In just three steps, we evaluate your note, present flexible offer options, and handle the rest so you get paid fast and stress-free.
1
SUBMIT YOUR NOTE
Tell us about your Seller Note
- Fill out a short form
- Share note details
- No commitment
We look at:
- Note balance & term
- Repayment history
- Collateral & guarantees
2
GET YOUR OFFER
Receive a tailored bid fast
- Offer in 2–5 days
- Get cash or cash + shares
- Transparent terms
Program options:
- All Cash
- Hybrid (Cash + Shares)
- Full or partial note purchases
3
CLOSE & GET PAID
- Close in days
- Cash wired, shares issued
- We service the note
You choose and we handle the rest
Benefits include:
- Immediate liquidity
- Diversified risk (if hybrid)
- Zero admin headaches
Our seller note programs
We Offer All Cash or Hybrid Cash & Fund Shares Programs
Providing Liquidity and Long-term Upside for Illiquid Note Holders
ALL CASH PURCHASE
Up to 85 cents on the dollar for full and partial note purchases
Immediate liquidity – more cash today
Locks in loss from the discounted purchase price
Lower overall purchase price
Hybrid CASH & FUND SHARES
Up to 95 cents on the dollar, with
a portion paid in cash and a portion paid in fund shares
Intended to be a higher purchase price
Turns a fixed payment debt instrument into an ownership interest in a fund with potential for an attractive dividend yield
Holding the equity allows the seller to potentially recoup the initial discount through dividends and potential appreciation4,5,6
Less cash today
Benefits of Seller Edge
Aligned Incentives and Mutual Gains
Whether you’re a business owner seeking a strategic exit or an investor searching for reliable returns, Seller Edge Capital offers a structured, secure pathway forward — built on trust, transparency, and tailored seller note programs.
BENEFITS TO BUSINESS NOTE SELLERS
Immediate Cash
Flexible Purchase Options
Certainty of Execution
Diversification for Estate Planning
Optional Equity Shares in Fund
Removal of Administrative Burdens
BENEFITS TO BUSINESS NOTE BORROWERS
Working Capital Lines of Credit Available
Institutional Credit Relationship
Strong Capital Partner for Future Deals
Potential for Reporting to Credit Agencies
Simplified Payment Processing Options
SELLER EDGE CAPITAL news
Insights, Updates, and Opportunities
Stay informed with the latest insights from Seller Edge Capital — including industry trends, educational content on seller financing, and real-world stories that impact business owners and private investors alike.
Performing vs. Non-Performing Business Notes: What Can Actually Be Sold
A business note is a debt instrument where one business owes another money over time—typically from a seller-financed business sale or equipment financing. If you’re holding one and thinking about selling it, here’s what you need to know up front: payment performance is the single most important factor in whether…
Secured vs. Unsecured Business Notes: What Buyers Actually Care About
A business note is a debt instrument where one business owes another money over time—typically from a seller-financed business sale, equipment financing, or commercial loan with specific loan terms. When sellers think about selling a business note, they often fixate on one question: “Is my note secured?” Here’s what you…
Business Note Valuation: Why Business Notes Sell Below Face Value
Many sellers expect to receive the full balance when selling a business note—or something very close to it. In practice, business notes almost always trade at a discount to their face value. This isn’t unique to any particular buyer. It’s how the market works across the board. This guide explains…