Business Brokers - Sell Business - Business Sales and Acquisitions - SunbeltNE

It is a fact that lesser deals have been made in buying or selling a business during the past year due to the recession. However, this is not due to lack of buyers in the market. There was a lot of buying interest in the past year, but many deals didn't close due to lack of financing. In this tight an economy, a buyer needs all the help he/she can get for buying a business. As a result of this, sellers who offer any kind of seller financing find it easier to sell business. If you are planning on selling a business, consider offering seller financing, as it makes it a more attractive deal for the buyer.

When you offer seller financing while selling a business, you agree to the buyer making an initial down payment and carrying a note for the rest of the purchase price. While this arrangement has always found favor with buyers, it is considered even more important in today's tight credit scenario. With seller financing, you may find it easier to sell business. However, there are some points to keep in mind when you decide to sell business with seller financing.

• Make sure you get a down payment

Many sellers make the mistake of refusing to take the down payment after offering seller financing. Even though you are confident while selling a business that it will be profitable enough for the new buyer to be able to pay you back eventually, a down payment reduces the risk that you face in the future.

• Assess the risks

Seller financing is nothing but an investment you are making. And like most investments, it has its risks. After an agreement has been entered into while selling a business, you need to wait patiently while the buyer develops the business, makes profit and returns the rest of the amount back to you. Profitability under the new owner is also not guaranteed, and you might end up making a loss if the new owner is not a sound businessman. Take into consideration all this before you sell business, as you need to be ready to tackle difficulties which may arise in the future.

• Get professional assistance

A business deal always has a lot of complications which you might not be able to handle alone. Selling a business requires the help of professionals like business brokers, who are experts at documentation associated with selling a business. If you are also offering seller financing, you may require legal and financial advisors to ensure that the paperwork is impeccable and there are no complications after you sell business.

• Use financing to your advantage

You may think that offering seller financing is one way of selling a business easily. However, seller financing may also turn out advantageous for you in the long run. Not only may it help you find a buyer for your business for sale easily, it may also allow you to sell business for more than its valuation. A buyer may be willing to pay a bit more if a seller is offering seller financing in times of tight credit situations.

There is no one-size-fits-all solution when you are selling a business. In case you have doubts on whether you should offer financing for selling your business, you should take advice from a person who has already sold a business with seller financing. That way, you can ask relevant questions relating to your situation and then decide whether it is the right step for you. All said and done, the final decision will be completely yours. But be sure to check all avenues related to seller financing before you sell business, so that you don't miss out on any advantages it could offer you.