Should You Help Finance the Purchase of Your Business?

Seller financing is an increasingly popular phenomenon. Offering to help finance the purchase of your business can make your business much more attractive to potential buyers. You will save them the

Should you and the buyer elect to take this route the terms of the financing contract will be based on your need to sell and on how much financing the buyer requires. This will depend in part on how much the buyer has for a down payment.

From the perspective of the buyer, securing financing through the seller is easier and gives the buyer greater flexibility than working with a traditional lender. For one thing, the interest rate will generally be lower than a bank loan. The payment schedule can also be more flexible. Since the buyer and the seller are both working toward the same end result, it is in the interest of both parties to create a suitable financing and payment plan.