Something like 80% of SMB transactions include seller financing. Sure, the seller is happy to receive steady payments over the next 5 years, but I have to imagine a lot of them just want their money and to get out.
Is there a market to buy the remaining cash flow from sellers? I know the new owners wouldn't be thrilled to have the seller out of the business, but I (buyer of the note) would be incentivized for the owner to keep making payments (succeeding).
Buying these notes is huge in RE, but curious if anyone has seen these transactions happen in the SMB space! Thanks in advance for any color.
Would the seller of a business sell their note for a 20% discount?
by an intermediary from University of Georgia
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