Seller Note Prepayment Penalty

searcher profile

January 10, 2025

by a searcher from University of Virginia-Darden - Darden School of Business in Charlottesville, VA, USA

We have a company under LOI with a seller note with a 15-year term. The owner is requesting a prepayment penalty. I wanted to know how the search funder community handled this situation.

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commentor profile
Reply by a lender
from Eastern Illinois University in 900 E Diehl Rd, Naperville, IL 60563, USA
Interesting. I do not think I have ever heard of this before. Usually seller's want to be repaid sooner than later. How long of a penalty are they looking for? Happy to discuss what are typical penalties. You can reach me here or directly at redacted
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