Why Seller Financing Isn't a Loan - And Why Thinking It Is Might Kill Your Deal

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August 05, 2025

by an investor from Babson College - F.W. Olin Graduate School in Boston, MA, USA

Thoughtful article from my partner, Kris Schumacher on the correct perspective on working with a seller note. https://www.linkedin.com/pulse/why-seller-financing-isnt-loan-thinking-might-kill-your-schumacher-cadse/?trackingId=zfJngLb6%2FVAohzEYPds2cg%3D%3D
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Reply by a professional
from University of Virginia in Holmes, NY 12531, USA
What a terrific piece - spot on in every respect. Seasoned sellers’ counsel is going to hopefully recognize seller financing for what it is (and the lack of a new cash outlay from seller/lender is indeed a HUGE distinction). And when there’s senior debt, 99.9% of the time, senior lender runs the show, period period - the best lawyering in the world can’t draft around ironclad contractual subordination - and so, yes, coming in late and insisting on such points can surely kill the deal. Also a terrific point re: signaling the SBA. Thanks for sharing!
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Reply by a searcher
from Massachusetts Institute of Technology in Dallas, TX, USA
Great article! Lost a deal recently (highest bid) because the seller did not want to carry any note at all unless it had better terms than senior debt, even though business financials were unusual. Not a loss I worry about much.
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