Financing a Business From Sellers

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Selling-a-Business-With-Seller-FinancingIncreasingly today more business-for-sale transactions are resting on a seller’s willingness to finance at least part of a sale. In a deal that includes seller financing, the seller takes part of the purchase price in cash and the remainder in the form of a promissory note that the buyer will pay back with interest over a period of three-to-five years. This has become essential; buyers are having difficulty accessing funds through traditional methods, therefore there’s a natural gravitation toward seller-financed businesses to help offset some of the cost up front.  This financing method was very common in real estate transactions.  It is a strategy that many real estate investors utilize to acquire real estate and other assets. Today, this is becoming popular in acquiring businesses due to the liquidity crisis and the difficult lending environment at the banks.

Conversely, sellers who continue to say no to seller financing are finding it difficult to close a deal, and as more of them have realized this, there has been an increase in seller-financed businesses on the market. You can search these businesses on the internet.

Today’s business-for-sale marketplace is full of exciting opportunities that will allow you to take your destiny into your own hands, and with various options available there’s no reason to let a shortage of traditional capital sources get in the way of your dreams.Funding to existing businesses is another option that sellers can utilize while they are pending sales and then they can include the note as part of the sale.

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