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Ellen, Attorney
Category: Business Law
Satisfied Customers: 36714
Experience:  25 years of experience helping people like you.
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We are trying to sell a small business for approx $160,000.

Resolved Question:

We are trying to sell a small business for approx $160,000. This price includes a truck, ($22K) a boat ($75K)equipped with a crane for installing and removing boat docks and lifts and the value of our customer list and business name($60K). A very interested buyer has proposed buying the business on a Land Contract with a $22K down payment. As the truck and boat both have a title, but the business name and customer list does not have such, would a land contract sale agreement work for us?
Submitted: 8 years ago.
Category: Business Law
Expert:  Ellen replied 8 years ago.
Is there any land involved?
Customer: replied 8 years ago.
There would be no land involved in this sale
Expert:  Ellen replied 8 years ago.

A land sale contract would not be applicable.

You can consider selling your business with owner financing which may be your intent with the land sale contract. You would sell the property, have the buyer pay a deposit and sign a promissory note to you for the balance. You would want to secure the promissory note by all of the assets of the business. You will want to meet with a local lawyer to perfect the security interest in the assets.

I hope that this helps.
Customer: replied 8 years ago.

As the value of the business name and customer list is not a tangible asset, am I correct in thinking the deposit should cover that amount (60k) with the prommisory note then covering the value of the boat and truck?

Expert:  Ellen replied 8 years ago.
You will want the the loan to be a blanket loan equally securing everything, even future receivables. This way if you need to take back an asset, you are not limited.
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