Seller Financing
Seller financing can reduce the buyer's cash burden and align incentives, but the note still has to fit alongside senior debt and post-close operating needs.
If the Seller Believes the Cash Flow, Sometimes They Help Finance It.
Seller financing leaves part of a business purchase price payable to the seller under a negotiated note. It is part of the capital stack, not free equity.
Specify subordination, security, payment timing and default provisions.
Combined senior and seller debt must leave operating cash after closing.
Bring the specifics.
- Seller note term sheet
- Senior-lender requirements
Keep an eye on
- Subordination or standby requirements may restrict payments.
- Disputes over the business can complicate an ongoing creditor relationship.
Work through the assumptions.
Acquisition capital tools
Explore purchase capital, buyer equity and operating reserves.
Open the tool directory DISTILLED / ACQUIREDeal analysis
Continue valuation, diligence and buyer preparation in Acquire.
Explore ON THIS SITEFunding readiness
Identify strengths, constraints and the next document to prepare.
ExploreKeep these on the shortlist.
Capital is one part
of the plan.
A question worth asking.
Can both lenders collect immediately after closing?
That depends on the agreements. Senior debt or program requirements may restrict seller-note payments; settle the treatment before closing.
A specific need deserves a specific plan.
Start with your profile. Understand the tradeoffs. Prepare a clear request.