Available Financing Options When Selling a Business
When you want to sell my business Culver City you need to familiarize yourself with all the available financing options. The last thing you want is for you to turn down the best buyer simply because you are not familiar with the financing option he is offering. At So-Cal Business Brokers we have helped sell businesses of all sizes and across industries. We have dealt with all manner of financing options. Here are the most common types of financing that we get to deal with.
Cash
It is not uncommon for a buyer to have his own funds to purchase a business. This is the best option you can get when you want to sell my business Culver City. The delays are minimal. The problem with this option is that buyers who want to pay in cash will tend to give you an offer that is a bit hard to accept. Our job when you hire our team is to help negotiate a better deal. If we cannot strike the perfect deal we will recommend using other financing options.
Seller financing
If you want to attract more buyers to your business and sell fast, this is the option we highly recommend. With seller financing you will be providing some of the funding by allowing a buyer to pay for part of the purchase price over time. Seller financing varies from 10% to 75% of the selling price. Our job will be helping you negotiate the best terms and also ensure you earn a favorable interest from this financing option.
Bank financing
This is a popular option used by buyers. When approved, the bank pays 90 to 95 percent of the purchase price at closing. With this option banks have a say in dictating the terms of the purchase agreement and will do their own due diligence. While banks tend to move quickly having a third party in the transaction ends up slowing things down.
Private equity groups
There are many options with this. Some are self-funded which means they have the money to complete the transaction while others search for funds and need investor approval before closing the deal.
When it is time to sell my business Culver City you always have many options to use. Our team at So-Cal Business Brokers will help you settle for the financing option that works best for your type of business. Contact us today and schedule a free, no-obligation consultation with one of our experienced business brokers in Los Angeles.