Seller Financing When Selling a Business

Seller financing when selling a business means you accept part of the price over time instead of all of it at closing. It is common, and it often increases the price and the number of qualified buyers.

Why buyers ask for it

It shows you believe the business will keep performing, and it fills the gap between the buyer's cash and the lender's loan.

How to protect yourself

• A meaningful down payment
• A personal guarantee and security interest in the business assets
• Reasonable term and interest rate
• Default and cure provisions drafted by your attorney

With real estate

When you own the property, you can hold a mortgage, sell it outright, or lease it to the buyer, each with different risk and income.

Talk it through with Josh