In Blog, Exit Strategies, Value Enhancement

4 Benefits of Seller Financing

By Jeff Kelling – M&A Advisor

Jeff Kelling - Cornerstone Business Services M&A Advisor

Seller financing is the bridge between a buyer’s immediate resources and the value they see in your business. Essentially, it’s a loan from the seller, with monthly payments scheduled over a multi-year period. Here are four ways seller financing benefits the seller.

Buyer confidence – buyers see less risk and pay more when you’re willing to keep some skin in the game.

More buyers – the more flexible you can be with the deal structure, the wider your buyer pool.

Taxes – spreading out your payments over time could lower your tax liability.

Interest – you set your own interest rate strategy to make your company more attractive or to generate additional income.

Related articles:

Seller Financing Benefits Both Sides of Transaction

Financing in the New Norm Takes Creativity

Investment Banking – It’s Not the Debt that Kills You

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