It is true that that the number of business selling deals have
greatly reduced around the world. But this is not only due to the hard
economic times. It is also due to a dearth of seller financiers which
stops many of these deals from taking off the ground. This is the reason
why sellers who are willing to finance their business sales at least in
part are selling off faster than those who do nothing.
When a business seller offers seller financing, he allows a buyer to make a down payment and accepts an agreement for the remainder of the purchase price at a later date. In other words, the buyer only comes up with a partial sum which he pays upfront. The remaining part of the money is paid over a stipulated period.
A seller’s desire to partially fund a business sale is a major force of attraction for people looking to buy a business. This is because many buyers cannot meet the full price of most sellable businesses and hardly receive any support from lending institutions. This is why some sellers are always faced with the decision to lower their selling price or to collect only a partial payment upfront and have the rest spaced out over time. read more
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