I want an all cash deal! O.K., but what if your better deal, or your only deal, is one where you provide some seller financing to make the deal happen?
We enjoyed, and learned from, Transworld Business Advisors’ The Deal Board podcast Episode 19: Benefits of Seller Financing
Key takeaways:
[5:16] What is seller financing?
[6:38] Flexibility of seller financing.
[7:30] Businesses are more likely to sell if they have owner financing.
[8:47] Seller financing increases the chances of a higher selling price.
[10:28] Seller financing brings in additional profit.
[16:50] Seller financing is a must to actually sell your business.
[18:55] Deborah Carman (Boca Raton) attorney
[19:59] 20% to 30% of the deals are cash.
[20:22] Buyer feels he is a partner with the seller when there is seller financing.
[21:36] Creativity in the structure of the deals.
[22:34] How is the seller protected?
[25:30] Communication
[28:08] Deal of the week: Erin Crawford. The buyer put only 5% down payment and took SBA lender. Price $500,000, $50,000 consulting agreement for one year, STE $210,000.
[31:17] Listing of the week: Robert Curtiss, niche retail store. Price: $200,000. Down Payment $90,000, three years owner financing.
