Resources
How Seller Financing Works
A plain-English guide for business owners — no finance degree required.
What Seller Financing Actually Is
In a typical business sale, a buyer gets a bank loan and hands you the full amount at closing. In seller financing, you act more like the bank: instead of one lump sum, you receive payments over time, funded by the ongoing profits of the business.
Even Payments, Growth Payments, or Both
Depending on the structure you choose, your income can come as steady even payments, growth payments tied to the business's future performance, or a blend of both. And because there's no broker commission and no bank fees eating into the deal, the total price you walk away with is often higher than a traditional sale.
Five Common Structures
Seller Note — Even Payments
A fixed monthly payment over an agreed term, similar to a loan you're the lender on.
Profit Participation
Your payment is a set share of the business's ongoing profits.
Revenue Share
Payments are tied to top-line revenue rather than profit, which can smooth out variability.
Earn-Out — Growth Payments
Additional payments tied to the business hitting agreed performance targets after the transition — you share in the upside as it grows.
Hybrid — Even + Growth
A combination — for example, a steady base note payment plus a smaller share of future growth.
Why Many Owners Prefer It
- Steady, predictable income instead of a single check to manage
- Often more total money over the life of the agreement than a discounted lump-sum offer — and a higher final price overall, with no broker fees or bank costs taken out
- Tax impact spread across years instead of one large bill in a single year
- The flexibility to choose even payments, growth payments, or a combination of both, based on what fits your retirement
How Payments Are Protected
Every agreement spells out the payment schedule, what happens if performance changes, and what security you have in writing before you sign anything. We walk through every scenario with you in plain language, not legal jargon.
Common Misconceptions
"Seller financing means I'm taking on all the risk."
Not quite — the agreement includes real protections, and because we run the business, we share the incentive to keep it healthy.
"It's the same as just holding a loan."
A loan doesn't come with someone actively running and growing the business you built. This does.