Seller-financed business sales are becoming more and more common these days and can be a win for sellers and buyers alike. Financing allows sellers to benefit from a higher number of buyers and a quicker sale. Some potential buyers may even be attracted to your business if it is seller-financed.
Benefits of a Seller-Financed Business
1. Pay Off Over Time With Interest
Sellers financing for a business is when the seller allows the buyer to pay off a portion of the price of the business over time with interest. This is done via a promissory note which outlines the details of the agreement.
2.You are buying a business from an owner who cares about your success
The good thing about seller financing is that you have someone in your corner from the beginning. The seller is confident that his or her business has the potential for long-term profit, which will enable the buyer to pay off their loan. Banks may even be willing to loan more money because the business owner is involved.
3. It works just like a bank loan
Rates are usually the same or lower than bank prime rates, while the terms are usually about the same. Small business sellers typically finance a third or more of their sale price. The buyer typically makes monthly payments to the seller starting a month from the sale date.
Seller financing is not something to be entered into lightly. We can help guide you through the process to find the perfect business for you. Contact Business Brokers Plus today.