Or check out our video on Seller Financing
Individuals selling a business who anticipate getting paid in full and in cash are far too optimistic. Being paid in full and all at one time hardly ever happens. Commonly, buyers come up with a down payment and pay back the rest in regular installments for some time. The seller must have patience, flexibility and be imaginative with the terms of the deal. They should consider the different financing arrangements presented prior to making a decision.
Buyers that anticipate having full third-party financial backing in acquiring a business will also be in for a shock. Financial institutions are a lot more selective considering the incidence of fraud as well as mismanagement. These companies are going to go over the deals using a fine-toothed comb. Without a doubt it hardly ever happens that buyers get a business without having to come up with some kind of contribution.
Seller financing is a viable option that can solve the difficulties on both sides, and should be considered in the interest of both parties.
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