Advice on Holding a Note for the Sale of my Business

[Antigone*]

Usury doesn't generally apply to commercial transactions, but obviously I can't say for sure either without knowing the OP's state.

Cite your source.

 

[CameronNewport]

Cite your source.

This is from § 278 of Corpus Juris Secundum:

Not every state provides an exception to the usury statutes where loans are made to knowledgeable business persons[FN1] or sophisticated borrowers.[FN2] In most jurisdictions, however, statutes directly or indirectly prohibit the interposition of the defense of usury where the borrower is a corporation[FN3] or where the loan is made for business purposes[FN4] or to a commercial borrower.[FN5]

 

[Antigone*]

This is from § 278 of Corpus Juris Secundum:

I'll tell you what Cameron, I underwrite commercial loans all day long and a loan with the rate you speak of is unheard of. A business owner with any business sense at all would spit in my face if I offered him a loan at 10-15%. And to boot a commercial real estate loan would never have a maturity of 50 years.

We are writing variable-rate loans at under 3% and fixed rate loans at under 5%. Loans will may have a 20 year amortization but they longest we'd go in time is 15 years. A 20 due in 20 is an exception and usually seen when going through the SBA.

It is obvious that our OP and the person who wants to snake him don't get it, otherwise he would have gone straight to his CPA and not to this message board.

 

[CameronNewport]

I'll tell you what Cameron, I underwrite commercial loans all day long and a loan with the rate you speak of is unheard of. A business owner with any business sense at all would spit in my face if I offered him a loan at 10-15%. And to boot a commercial real estate loan would never have a maturity of 50 years.

We are writing variable-rate loans at under 3% and fixed rate loans at under 5%. Loans will may have a 20 year amortization but they longest we'd go in time is 15 years. A 20 due in 20 is an exception and usually seen when going through the SBA.

It is obvious that our OP and the person who wants to snake him don't get it, otherwise he would have gone straight to his CPA and not to this message board.

I'm trying to figure out what this post has to do with the price of tea in China ...

 

[nextwife]

Does she have significant equity in some other asset which could be securitized? Such as real estate that is free and clear or which has a low balance mortgage? She could also get a loan against THAt ASSET AND PAY YOU MORE CASH.