Financing Options

The importance of seller financing

VR Business Brokers on the Island of Hawaii requires most of its seller clients to provide some level of seller financing to the business buyer.

Why?  The key reason, and this is a bit counter intuitive, is that seller financing protects the buyer.  Huh?  I though you represented the seller client so wouldn’t it be better to get them 100% cash?

Actually, no.  We live on an island, and although the Big Island is well, BIG, it is also a very small business community and although we primarily represent sellers we want to see the buyer become very successful with the business acquisition.

The best way to make sure that happens is to provide some level of seller financing so that the seller is vested financially in the business buyer’s success right from the first contact with the prospective buyer.

There are many other reasons why offering some level of seller financing is important…it increases the number of qualified buyers who will consider acquiring the business as many (100%?) of the buyers we deal with REFUSE to consider any business where the owner is not confident enough in the business to provide some level of seller financing.

Sellers will typically get more money, including reduced tax payments by offering seller financing.

But in the end, the #1 reason is to help both parties focus on ensuring the business transition is smooth and successful…reach out to the experts in setting up seller financing which protects both the buyer and the seller at the #1 business brokers on the Island of Hawaii…e-mail: griffrost@vrhi.com