When selling my business, can I cash out at closing? Is it possible to sell my business for all cash? Or do I need to finance a portion of the purchase price?

One of the simplest ways to finance the acquisition of a business is to work with the seller to negotiate some form of seller financing, which is called a “seller note.”

If you’re curious about what, exactly, it that third-party loan processors can do and who, exactly, are some of the companies that do it, we’ve got the scoop.

A buyer can invest in a business or franchise through this process by utilizing existing retirement funds without taking a taxable distribution or getting a loan. This arrangement allows an individual to invest up to 100% of their eligible assets to finance their venture debt-free.

Buying a business requires more than having in hand a sound business plan; it requires financing. Many buyers attempt to secure financing on their own, but the reality is that 84% of those loans are denied.

In the following article, we examine each source of financing in more detail, including the advantages and disadvantages of each and how different forms of financing can be combined into some common transaction structures.

The seller is interested in getting the highest possible price, of course, while the buyer might be apprehensive about the company’s ability to grow as promised or keep customers and key employees. Enter the earnout.

It is essential to understand what happens to debt when a business is sold. In some instances, the debt is absorbed in the transaction as part of the sale. However, this is not the case most of the time.

Sometimes buyers start out with the best of intentions yet end up realizing they have overestimated their capabilities to pay. Needless to say, dealing with buyers who have defaulted on a seller note can be disappointing.