In today’s marketplace, a seller should expect to finance some portion of the sale. Financial institutions today are asking for sellers to take back some piece of the sale price, especially if the intangible portion of the sale is an unusually high percentage of the price. When reasonable terms are set up, the chances of selling increase and the time period to sell decreases. Many sellers don’t realize how much interest they can receive by financing some or all of the sale of their business. In some cases, the amount received greatly increases.
One important point that is easy to overlook is that allowing for seller financing tells the buyer that you have confidence that the business can, indeed, pay for itself. Of course, not all sellers are in a position to carry. Each situation must be analyzed and reviewed. At Provest, we can help you make the right call.
