As a demo, "No Matter What" was originally recorded by Ham on acoustic guitar and performed with a mambo beat (as heard on the posthumous Ham solo CD 7 Park Avenue). A similar sound to the original demo can be heard on an album track from their next album Straight Up called "Perfection". A rough, rockier version of the song was recorded by Badfinger in March 1970 and produced by Mal Evans. The song was recorded again by the band in April 1970 at Abbey Road Studios and it was this version that would appear on the album and single.

Although the song and recording was a favorite of Badfinger's shortly after it was recorded, the hierarchy at Apple reportedly was not inclined to release it in any format. It was not until Al Steckler, the American director of Apple in New York, heard the tape in the summer of 1970 and considered it a strong entry by the band that it was slotted for the upcoming LP and as a single release.