What is seller financing?
Category:
Buying a Business
Seller financing occurs when the seller agrees to finance a portion of the purchase price rather than receiving the full amount at closing. Buyers typically make payments over an agreed period according to negotiated terms.
Seller financing can sometimes make a transaction more attractive by reducing the buyer’s initial cash requirement while demonstrating the seller’s confidence in the future success of the business.
Every financing arrangement should be carefully documented and reviewed by the appropriate professionals.