4 things business buyers need to know about seller financing - The Business Journals

"Even though the economy and the pace of transactions in the business-for-sale marketplace have improved, seller financing continues to be a fundamental ingredient in many small business transactions.

With lending options still far from ideal, buyers continue to rely on seller financing as a way to fund the purchase of small businesses. With that in mind, below are a few key issues to consider whether or not to make seller financing a part of your deal.

1. Your down payment will need to be significant.

In bank-financed business acquisitions, buyers usually need to provide 15 percent to 25 percent of the purchase price as a down payment. If the down payment is less than 15 percent, the bank may also require the seller to finance a portion of the purchase price, usually 10 percent to 15 percent of the deal."

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4 things business buyers need to know about seller financing - The Business Journals:

For additional information regarding Florida business sales, acquisitions and valuations, please contact Eric J. Gall at info@buysellflbiz.com or 239.738.6227. Also, visit our Florida Business Exchange website at www.fbxbrokers.com and my personal website at www.buysellflbiz.com.