Glossary
Full standby
a frozen seller note
A seller note where the seller receives no payments at all — not principal, not interest — for a defined period.
Why it matters to you
The single most useful structure in small acquisitions. A note on full standby can count toward part of your required injection, which means materially less cash out of your pocket at closing. Ask about it early, because the seller has to agree and it changes the negotiation.
Rule source how long the standby must run and how much counts toward injection has changed between SOP versionsChecked 2026-07-28