Login Register

What is Seller Financing?

Seller financing is similar, in many regards, to bank financing. The potential buyer might not qualify for the entire financing through a normal bank loan or even for a portion of it. In those cases, if the seller believes that the buyer is still creditworthy, he or she may allow the buyer to make payments, rather than requiring the buyer to pay the price up front.

The disadvantage to the seller is a higher than normal chance of default on the loan. On the other hand, seller financing usually allows for a faster transfer. It also allows the seller, now financier, to require monthly reports of inventory levels, revenues, and profit/loss statements to evaluate the performance of the buyer.

Finally, the buyer has the chance to become profitable without a large initial expenditure and the seller can commonly defer some of the tax burden of the transaction, otherwise incurred in a traditional resale.

Recent Articles

Cleaning Franchises: 10 Pros and Cons

Cleaning franchises can offer a range of benefits and drawbacks for aspiring business owners in the cleaning industry. Understanding the […]

Starbucks Franchise: Why You Can't Own One & What to Consider Instead

Introduction The Starbucks franchise brand has become synonymous with premium coffee and has a global presence with thousands of locations. […]

Manufacturing Franchises: 5 Ways They Can Build Your Wealth

Manufacturing franchises can potentially build your wealth in several ways: Established business model: Manufacturing franchises typically come with an established […]

Owning a Chick-fil-A Franchise: Pros and Cons

Chick-fil-A is a popular American fast-food restaurant chain known for its chicken sandwiches, nuggets, and waffle fries. The company was […]

A Printer Franchise Could Make a Great Impression on Your Finances

If you're considering owning a printer franchise, here are some things you should know: Printer Franchise Training and Support Most […]

Owning a Dunkin' Donuts Franchise: Pros & Cons

Is the thought of owning your own business and being your own boss interesting to you?  Would you prefer to […]

Featured Franchisors

Featured Franchisors

Featured  Resales

Express Employment Richmond KY
Express Employment Office Resale
Express Employment Guelph Ontario
Express Employment Resale Office
Express Employment Salt Lake City UT
Express Employment Office Resale
Plato's Closet Chester, VA
Great store and a great location!
Valpak - Nashville, TN
Great opportunity to buy an established Valpak franchise
Established Successful Women's Fitness
20 year history of success! New tech & remodeled location!

Featured Resales