Seller Notes current rates (Nov 2024)

by a searcher from The University of Michigan - Stephen M. Ross School of Business

1 week ago

I'm looking at structuring an LOI with both Forgivable seller note paid over  6 years (because of extremely high customer concentration) and a standby seller note(standby for 2 years then paid over next three). What would be the current norm for interest rates, with prime at 7.75 % ? Is there any incentive for the seller to accept lower rate than I can get from SBA lender? If this makes any difference, the seller is from EU(France).

Thanks

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lender from University of Missouri - Columbia

Are you already working with an SBA lender? Would be happy to discuss. I agree, ask for principal payments only or interest at prime and negotiate.

5 days ago | like reply | 0 likes

searcher from The University of Michigan - Stephen M. Ross School of Business

I'm working on a deal structure which has ~40% forgivable seller note because of extreme customer concentration - has anyone done such high % of seller financing and in what AM and what did you tie it to ?

5 days ago | like reply | 0 likes

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