Getting a deal done with seller financing or notes

You have bought something on Amazon, right? Of course you have.

Let’s say you’re searching for an item and not exactly sure what you want.

Amazon presents many ways to filter the (bewildering) number of options: price, brand, reviews, features, weight, availability, etc.

What’s the 1 “filter” box nearly all of us click?



We want free shipping.

Now, in selling a business,

Amazon Prime = seller financing available.

We advise every owner we work with to empower us to confidentially market their business as seller financing available even if it is not an appealing option for the owner.

Why? Because it is one of the first ways a prospective buyer will filter down the many options presented to them on business for sale marketplaces.

Keep in mind, marketing a business as “seller financing available” does not mean that seller financing will be a part of the deal. It merely keeps these buyers in the mix and ensures your business is on their radar.

On business for sale platforms, we often include this language:

Seller financing up to X% is available, on a case-by-case basis, for buyers with appropriate financial qualifications and operational experience.

Couple notes:

  1. Buyers (and their lenders) see a seller’s willingness to finance part of the deal as a strong vote of confidence in the continued success of the business
  2. We advise on a market-rate interest rate, term, and appropriate language to protect you
  3. IF seller financing is going to be part of the deal, we tell buyers that as a lender you are no different than any other bank. Meaning they will be required to provide credit information, sign a legally binding note, and a lien will be placed on the business or their personal assets. All standard practice to protect both parties

Generally, we advise against seller notes longer than 4 years and/or exceeding 20% of the transaction price. We have seen some sellers open to exceptions for buyers that they personally know or are friendly competitors.

Seller financing or notes reduce the amount of bank financing that a buyer needs to obtain, helping facilitate a deal.

Hopefully, after reading you are at least open to enabling us to market your business this way in the future.

In an upcoming post we will discuss earn-outs and how they can be used to help bridge a valuation gap between a seller and buyer.

That is it for today – more to come in a future post. Please forward or share this content if you find it valuable. As always, thank you for reading! 

At Washington Business Brokers we are experts in valuation, optimizing a business for sale, buyer identification and qualification, negotiation, deal structuring, and closing.

If you would like to better understand the value of your business or learn more about the process of confidentially selling:

call or text 206.703.3555
email [email protected]
or schedule time for an exploratory, free chat

Conversations are always confidential and there is no commitment. We will be ready when you are!

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