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Getting Out of Your Business Selling Your Business Structuring the Business Sale Payment Terms Payment Terms: Seller Financing
Getting Out of Your Business Selling Your Business Structuring the Business Sale Payment Terms Payment Terms: Seller Financing
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PrintPayment Terms: Seller Financing
One important question that a buyer is likely to have is, are you willing to finance at least part of the deal? This is a very fair question — some advisors estimate that seller financing was present in as many as 90 percent of all business sales during the bank-credit crunch of the early 90s. While the crunch has eased somewhat, sellers still finance more than half of business sales.
Sellers are often willing to do this because they can usually postpone some of the capital gains tax on the sale if they comply with IRS requirements regarding installment sales. Buyers are relieved because business acquisition loans from banks are still rather hard to come by.
