Seller Financing Basics
- Topics:
- Alternative Financing,
- Angel Investment
- Source:
- Glen Cooper
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Overview: Article overviews that most small business sales are financed, at least in part, by the sellers themselves. Offering seller financing puts the seller in a stronger position to get a better price and a faster sale. Buyers nearly always need seller financing. Their advisors strongly recommend it. Seller financing acts like a bond for performance to assure that the seller will live up to the promises made to the buyer during the sales process. Seller financing is seen by most buyers as an indication that the seller has faith in the future of the business. Buyers can expect, however, that sellers who offer seller financing must also act a lot like a bank. A buyer can expect to be asked to secure the loan and sign a personal guaranty. Article also explains that what seller financing is, why a seller would offer financing, why a buyer should ask for seller financing, how seller financing is usually secured and how both buyer and seller can be benefited.
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Format: HTML | Date: Jan 2003 | Pages: 1
