What Is Seller Financing In Commercial Real Estate?
When it comes to selling a business, one question almost always comes up: What is seller financing? It’s a topic that can make or break a deal, yet many buyers and sellers approach it without fully understanding how it works or how to use seller-financed options to their advantage. Whether you’re exploring how to get seller financing for a business or want a clearer picture of the process, this guide breaks it down. We’ll explain what seller financing means, when and why it’s used, and what both parties should consider. We’ll also share a seller financing example that illustrates how it all comes together. What Is Seller Financing in a Business Sale? Seller financing , also called owner financing , occurs when the business owner agrees to accept part of the purchase price in payments over time rather than receiving the full amount in cash at closing. In this arrangement, the seller essentially acts as the lender, holding a note (or sometimes a lien) while the buyer pays o...