seller financing interest rate?

by a searcher from Northwestern University - Kellogg School of Management

2 months ago

Anybody know what a typical interest rate on seller financing is right now?  May 24, 2024

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intermediary

The interest rate is whatever the buyer and seller agree to. This is currently in the 5%-6% range for 3-4 years for the deals we do. If an SBA lender is involved, you're looking at a 10-year seller note with a 2-year standby.

1 month ago | like reply | 0 likes

intermediary from The University of Chicago - Booth School of Business

Seller financing is for price preservation and/or risk mitigation. hence, it's cost should be lower than senior debt.

1 month ago | like reply | 0 likes

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