How to Earn 100% Seller Financing in Business Acquisition

Relationships and Trust Are Key

Many hopeful business acquirers read about completing a deal that is mostly seller-financed but find this arrangement elusive. Sellers typically want to sell their business fast, receive a lump sum payment, and clearly separate ownership before and after.

Instead, acquirers usually work to find an SBA loan and hope to get a decent seller note to tie the former owner to the business’s continued success. While this is a good option, it isn’t the best option.

While Seller Financing can sound “too good to be true,” I can vouch that it’s entirely possible. Of my 3 acquisitions, 2/3 of them, especially the biggest one, were Seller Financed.

Here’s Why You Want 100% Seller Financing

Choosing 100% seller financing when buying a business can offer distinct advantages, especially in the context of speed, commitment, and flexibility:

Speed:

Obtaining seller financing can expedite the acquisition process. By eliminating the need for third-party lenders and their often lengthy approval processes, both parties can swiftly move forward with the transaction, potentially closing the deal in a shorter timeframe.