Seller Financing

The Importance Of Seller Financing

When you offer seller financing, it makes your business available to a much wider range of prospective buyers. Simply put, there are more buyers with $200,000 available than there are with $400,000 available. So, if you want to sell your business for $400,000, offering 50% seller financing greatly increases the chances that your business will sell.

Not only does seller financing increase the chances that your business will sell, it can also increase the selling price of your business.

Sell Your Business For More

Studies of businesses sold show that businesses where seller financing is made available sell for anywhere from 11% to 67% more than businesses that sell for all cash.

Another positive aspect of seller financing is that you now have a great investment. Since seller financing rates are typically 3-4 times the best rates you can get from a bank or institution your return is much better.

Be sure and discuss the importance of seller financing with your business broker. He/she can also explain the security agreements that can be set-up to help protect all parties when there is seller financing.