If you are a budding entrepreneur who is looking to purchase an existing business, you will likely need to consider seller financing. The days of full third-party financing are long gone, as traditional financial institutions are much more careful and selective when financing small business deals. Any financing intuition will go over the business details thoroughly, as they need to be wary of mismanagement and fraud. It is highly unlikely that as a new business buyer you will get 100% financing, so it is best to have some kind of down payment together and look for business sellers willing to finance part of the purchase price.

On the seller’s side, visions of a full-price, all-cash buyer need to be brought back to reality. This type of deal rarely happens. It is much more common to find buyers with a down payment ready, and the desire to pay back the rest of the purchase price to the seller over time. As a business seller, you need to be flexible and patient when it comes to the terms of your deal.

In the interest of both sides in a business transaction, seller financing is an option that should be considered. It can overcome the financial difficulties that would otherwise stop a deal from happening. Ask your business broker about the seller financing option.

Michael Monnot

941.518.7138
Mike@InfinityBusinessBrokers.com