Seller Financing is Available For Businesses Too

Seller financing is when the business owner, as opposed to a bank or lending institution, assumes responsibility for a percentage of the buyer's purchase by holding a note. If you are looking to buy a business but don't think you can get a bank loan to buy one give owner financing a shot.

Many people believe that business owner financing only comes into play when a potential buyer is unable to secure financing for the purchase due to the owner's asking price. In such cases a business owner would only have two options: lower the asking price or offer to finance the sale. Sometimes a seller's ability and willingness to work with the buyer and provide seller financing is the only way to complete the sale. However more often than people seem to realize business owners are willing to offer financing as a way to keep their money invested in a solid income generating venue.

Getting a full price all cash offer is what most people think the business owner is looking for when they list their business for sale. Often that is not the case. Offering to owner finance the sale not only eliminates the need to find another place to invest the proceeds but it also allows the seller to keep the emotional contact they probably have formed with the business. By having a financial interest in the business it is often easier to relinquish control of the day to day operations. Sometimes businesses are sold for health reasons or retirement and it hurts the seller to cut the cord with a business they have grown for many years. Financing the sale makes it easier to sell the business too. There will be more interested and qualified buyers competing to purchase the business so the seller will be able to pick the person they feel will best match their business philosophy and have the same business outlook.

If you are looking to buy a business ask about online seller finance in India. If you are looking to sell a business consider the benefits of offering seller financing.

Also read: Complete Guide to Merchant Cash Advance

Don't let the credit crunch stop you from buying or selling a business. Business owner financing can help the seller as well as the buyer and the note can be sold for cash to a business note buyer either at closing or after it has been seasoned.

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