How do Business Brokers get paid when there isn’t enough cash?

by a professional from Bishop's University

2 years ago

Cassio asks how brokers get paid when there is a seller note. Does it matter?
Should this concern a buyer?
What about the seller?
What if there’s no money to pay the broker?
I look at this from the point of view of the different parties and talk about some of the solutions I had to come up with when I was a broker, dealing with broke sellers.
Watch this week’s video here: https://youtu.be/ImglpvXOL3k 

2 likes
192 views
10 comments

searcher

Interesting

2 years ago | like reply | 0 likes

intermediary from Wisconsin Lutheran College

If there are not enough proceeds at closing to satisfy any outstanding obligations and the broker, that business should never have gone to market. At least not with a broker. Shame on them for not doing their work up front. That was an early lesson in my career...

2 years ago | like reply | 1 like

More on Searchfunder

Just Closed on My First Deal! Reflections and Takeaways for other Searchers

45,152 transactions are available on Searchfunder (now searchable by keyword)

Now everyone has unlimited IBISWorld access

Family office looking for traditional searchers

Examples of self-funded searcher websites

Investor seeking Self-Funded Search Deals

What are market terms for Seller Notes?

2 Best Ways To Find Motivated Sellers, Off-Market Deals

Searchfunder is an online community and toolkit for searchfunds. Over 80% of those involved in searchfunds maintain a Searchfunder.com account to help them network, problem solve challenges, and keep up with the industry.

We maintain partnerships with database providers that make searching more effective, efficient and affordable along with features that help searchers find deals and investors and vice versa.