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When it’s time to sell your business, you know it in your gut. You might feel burnt-out, anxious or long for a fresh start. However the feeling manifests, you must act on it quickly. Things move at warp speed in startup land. If you want the best acquisition deal, you need to move equally fast.
But not all potential buyers have the capital for an acquisition or the means of raising it. They might be waiting on bank financing, a loan from the SBA (Small Business Administration) or simply for their coffers to fill. So what do you do? Trade a sale now for one in the future when your valuation might not be so secure?
Although a cash sale is usually preferred, seller financing opens the door to buyers who don’t have the funds for a cash purchase. With a bigger buyer pool, you stand a better chance of selling at the right price, at the right time and to the right buyer. So let’s take a look at what seller financing means and how it could help you.
What is seller financing?
In some ways, seller financing is just like any financing. Instead of selling