Selling Your Business? You Can Finance Your Buyer
Seller financing is an attractive part of business acquisition. This happens where a business owner is willing to finance the buyer in the event of a business sale. The amount of financing usually covers part of the selling price. Brian Caldwell of Transworld Business Advisors explains how it works, why it can be an attractive prospect even for the seller and what the drawbacks are.
Both the buyer and the seller usually benefit from seller financing. Seller financing gives the buyer the capital they need to make the purchase happen and makes other lenders more likely to finance. For sellers, it brings to them more prospects and perhaps allows them to charge a slightly higher price for the business.
The following are the standard terms that occur on most seller financing deals;
