Business Buyer Advice: Using Cash and Seller Financing

During the recent economic downturn, many aspects of our economic climate have been likened to the Great Depression.  When looking to purchase a business, one truth of that time long ago still stands, cash is king.


If you are able to pay for the majority of your new business with cash, you will be a highly desired buyer in whatever industry you choose. If you have the ability to purchase a business outright, you will have a great deal of leverage in any business purchase transaction.


If you have a decent amount of cash, but not the entire amount that you need, the economic climate can actually give you better financing options in the form of seller financing.


Lending institutions are hesitant to lend money, so business sellers have the choice to wait for a buyer with all of the cash, or offer seller financing.


Seller financing might offer lower interest rates and a longer period to pay back the loan, especially if the seller knows that they will be getting a good deal of cash up front.


Try to only finance a small portion of the purchase price, as this will set you up for success down the road.  A smaller amount of debt will lead to less pressure and the ability to focus on growing your business instead of just keeping it afloat.


Are you a buyer with some cash who is interested in learning more about seller financing? Leave us a comment or question, and we will be happy to answer any questions you might have.




Michael Monnot


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Michael Monnot


5111-E Ocean Blvd
Siesta Key, FL 34242

Michael Monnot


9040 Town Center Parkway
Lakewood Ranch, FL 34202


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