Financing Options in Florida – Seller Financing

Financing Options

International Business Brokers realizes that it is important a buyer or seller know the value of a business. If the SBA, a conventional bank, or seller is financing, both buyer & seller should have a clear idea as to the function of cash flow. It is advised for both buyer & seller have an accountant to verify information.

Seller Financing

The seller sets the price and buyer sets the terms. Approximately 70 percent of all small businesses sold include seller financing. Most buyers will not want to commit to pay the full price up front. One of a buyer’s principal objectives is to obtain the highest return on his or her down payment (return on investment) possible by leveraging his investment. The more a seller is willing to carry back or hold in a note, the more attractive that investment will appear to a buyer. The seller should be prepared to carry back from 20-50% with terms that the buyer can afford from the business cash flow. This is particularly important where there is high cash in the business. More than ever, International Business Brokers have found that seller participation is critical when selling his business.