Seller Financing
How owner-financed transitions work — terms, structure, security, and what makes a seller note successful for both sides.
In plain words
Seller financing means the owner lets the buyer pay part of the price over time, like a loan from the seller. It can help a sale happen sooner and is often combined with a bank or SBA loan.
In more detail
Seller financing — sometimes called an owner-carry note — is one of the most common ways small businesses change hands. The current owner accepts payments over time instead of a full cash payout at close, lowering the cash a buyer needs up front and signaling that the owner believes in the business's future.
- Down payments typically range from 10% to 30% of the purchase price
- Notes are usually 3–10 years at 5–9% interest, often Prime + a spread
- Frequently combined with SBA loans to bridge the funding gap
- Personal guarantees from the buyer are standard
- The seller holds a security interest until the note is paid
A complete walkthrough with structure, examples, FAQs, and what to watch for.
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BPM does not accept or store any paperwork. After your first phone call, buyer and seller exchange email addresses and share documents directly.
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