What are some standard examples of Seller financing?

by a searcher from DePaul University

1 year ago

Can anyone share some of the standard seller financing options they have achieved or have seen for various deals?  For example, how many years are sellers typically willing to finance?  Do they expect interest paid on the financing?  If so, what are typical interest rates charges in seller financing deals?

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15 comments

professional from University of Pennsylvania - The Wharton School

Hi Art, seller financing is extremely common in SMB deals and if I was representing a buyer, I would insist on it (when used in conjunction with a set-off provision in a purchase agreement, it is a great method to allow the buyer to satisfy indemnity claims). I have never seen a seller agree to accept seller financing without interest. The interest I have seen tends to be reasonable (4-8%).

1 year ago | like reply | 1 like

searcher from Harvard University - Harvard Business School

Thanks

1 year ago | like reply | 0 likes

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