Financing Options

Once a Purchaser decides that a business is the perfect fit for him or her,  the next step is to decide how it is to be financed.  Of course if a Purchaser has all of the money in cash, the problem is resolved. However, experience at VR Business Broker’s tells us that the majority of Purchasers do not have all of the money in cash and will need both a loan from a lender and Seller financing to complete the transaction.

Most Sellers are initially reluctant to take a Sellers note, but the VR Business Broker network reveals that Sellers who offer financing receive on average 30% higher sales price than Sellers who do not. In addition, lenders that utilize the Small Business Administration (SBA) loan guarantee program for Purchasers are increasingly requiring that the Seller hold a note in order for them to approve a commitment for financing.