E-commerce · Deal Structure
Seller-note structure
Published · Reviewed by The Diligence Standard Team · Updated
A seller note can align confidence and bridge financing, but terms, subordination and default mechanics matter.
Records to reconcile
- Note terms
- Cash-flow capacity
- Seller representations and risk allocation
Warning signal
The note is treated as risk protection despite weak remedies or early amortization.
Transaction impact
Nominal consideration may conceal cash strain or limited protection.
Response
Evaluate the note as part of total economics and obtain legal advice.