More details to this question:
We thought we had a buyer for our coffee kiosk business until she realized that $35,000 is not $3,500. She still wants to buy it with $3500 non refundable down and monthly payments with interest until paid in full, no refunds on any payments. Is there a way to do this and have any protection?
1 ANSWER
Yes, you would take a security interest in assets sufficient to secure the payments, for example a mortgage on any real property the buyer owns, as well as a security interest in all the assets of the kiosk business, tangible and intangible (including any lease, accounts receivable, physical equipment, etc.) You would record these security interests in the proper way (you might feel more comfortable using a lawyer to make sure that everything is done properly) so that potential buyers of the assets are put on notice of your liens, then if the buyer defaults (make sure your contract contains an acceleration clause which makes the full balance due and payable on default, as well as a provision obligating the buyer to reimburse you for any attorneys' fees you expend in enforciing the agreement), you would (after followng the necessary legal process) sell the assets to recover what you are still owed. There are other ways of protecting yourself as well, for example getting someone of means to cosign or guarantee the buyer's debt.
Answered on May 30th, 2014 at 12:27 PM