Looking to sell a business. Purchasers are employees. Traditional financing options (bank, SBA) have some negative aspects (for both). I’m not crazy about self-financing the deal, but would consider it. Other than just carrying the note, what are some other common considerations? Retaining a share of profit over a certain amount? Other ideas to incentivize early payment?

  • yourbizbroker@alien.topBEnglish
    1·
    10 months ago

    Business broker here.

    Make an SBA loan your first choice if you can. I recommend contacting Live Oak Bank and Huntington Bank. They are national lenders that are good about lending on blue sky rather than just asset value.

    You could also blend the sale with SBA and seller financing. As of August of this year, you may also retain a portion of the equity. By doing so, you might be able to bypass a down payment from your buyers making it easier for them to purchase.