Then insist on a guaranty against additional pledges or transfers of those assets during the seller note term. If the buyer is forming a corporation, ask that 100 percent of the stock in the new corporation be placed in trust to be voted by you if the buyer defaults on either the bank note ore your seller note. This right to vote the stock in case of a default gives you a way to re-enter the business if speed is needed. By voting the stock, you can fire the buyer, hire a manager or even put the business back on the market for sale. This right is especially important if you are in second position behind a bank.
Banks usually have no interest in anything but the tangible assets.
When a business fails, a bank's interest is usually best served by locking the doors so it can liquidate its collatoral and move on. Even in a case of a failing business, you can often get a manager on the scene in time to straighten things out before the serious damages caused by a bank foreclosure or a bankruptcy filing can take place. A stock pledge is also a very clear message to a buyer than meeting the payment schedule is critically important. It provides recognition for your position as a financing seller who wants to be paid. Usually, such an aggrement provides that a default in the bank loan or the lease is considered as a default on your seller note.