Selling a Business with Owner Financing

Hoping to buy or sell a business during the credit crunch? Finding financing for a business sale can be a serious deal killer. Fortunately seller financing offers a solution to meet the challenge. 

While some business buyers successfully obtain loans from banks and Small Business Administration (SBA) programs, many more are declined due to restrictive requirements. To facilitate a purchase, the seller of the business may elect to “be the bank” by accepting payments over time from the buyer.

When owner financing only involves the business, without any real estate as collateral, it is often referred to as a business note or business only note.  The assets or collateral generally include furniture, fixtures, and equipment (FF&E) along with inventory, goodwill, and any other personal property. 

If a seller prefers a lump sum of cash today rather than payments over time, they can sell the business note to a note investor.  Pricing can vary greatly based on risk so it is important to understand how a note investor will evaluate the business note.  Working with a knowledgeable business broker experienced with selling notes will assure the best terms and structure.

Looking for a real life example? Be sure to read Real Deal #141 to see how this solution worked for a Bagel Shop and Deli business in the Washington D.C. area.  For more money saving ideas also read How to Create Business Notes for Resale.

About Tracy Z

Tracy combines her knowledge of cash flow notes with the power of marketing online to help grow your business! She can be reached at 1-888-999-7905 or at Exposure One Marketing.


  1. offers free and fee Loan Tracking tools to help people manage their seller notes and financing. See us at

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