Seller financing

[bmw650]

Do most sellers offer financing on higher priced businesses? Such as 40k to 130k range? How does the typical financing deal is structured?

[Clinton]

Almost all higher priced deals involve some element of financing in my experience. But not at the price range you're talking about. At under $150K it's usually a "cash" purchase.

When there is seller financing it takes many forms. It could just be a note that's raised or the payments could be based on future performance. In my purchase of the finance network, I negotiated the cash price down by agreeing that the seller gets x% of the capital gains I make if I sell within a certain period.

You looking to buy or sell?

[bmw650]

I was looking to buy. Is it possible to put a down payment on a business and then make payments on it based off the business performance sort a like a car payments etc?

[benitez17]

I was looking to buy. Is it possible to put a down payment on a business and then make payments on it based off the business performance sort a like a car payments etc?

It's possible, but I think you can expect to pay a hefty premium to limit the risk for the buyer. If I sold one of my sites, I wouldn't want to allow the new owner to cost me money by running the site into the ground, or even worse, intentionally manipulating the performance to reduce the amount he owed me.

I have been able to get sellers to agree to payments over time by offering over asking price and by finding sellers who were asking too much for their site and got no other bids, so it is possible. None of those deals were based on the performance of the site though.

[bmw650]

How are most of the seller financing deals are structured so that its fair for both parties?

[Clinton]

There isn't a standard, it's up to the parties in each case to negotiate the terms of the deal. If you want any assistance with a particular purchase you're looking to make, drop me a PM with all the details and I'll see if I can help.

[bmw650]

There isn't a standard, it's up to the parties in each case to negotiate the terms of the deal. If you want any assistance with a particular purchase you're looking to make, drop me a PM with all the details and I'll see if I can help.

Ok Clinton thanks, I will be sure to drop you a PM