It is becoming more and more common for businesses to offer seller financing. Financing allows sellers to benefit from a higher number of buyers and a quicker sale. Some potential buyers may even be attracted to your business if it is seller-financed.
Benefits of a Seller-Financed Business
1. Pay the loan off over time
Sellers financing for a business is when the seller allows the buyer to pay off a portion of the price of the business over time with interest. This is done via a promissory note which outlines the details of the agreement.
2. Work directly with the business owner instead of a bank.
Rates are usually the same or lower than bank prime rates, while the terms are usually about the same. Small business sellers typically finance a third or more of their sale price. The buyer typically makes monthly payments to the seller starting a month from the sale date.
3. The seller wants you to be successful
The good thing about seller financing is that you have someone in your corner from the beginning. The seller is confident that his or her business has the potential for long-term profit, which will enable the buyer to pay off their loan. Banks may even be willing to loan more money because the business owner is involved.
Contact NJ Broker Plus to find the perfect business for you and will guide you through the entire buying process.