La Habra Commercial business Sales

What is Seller Financing?

Commercial business sales La Habra are often delayed due to the lack of funds on the side of the buyer. How easy it is for a buyer to get financing will affect how fast you sell. At So-Cal Business Brokers we focus on helping you sell fast. One of the ways we do this is by making it easy for buyers to secure financing. We enlighten them on the available financing options. Some of these options are well known such as the SBA loans, bank loans and the use of private investors. One great financing option that both sellers and buyers overlook is seller-financing. When you come to us, we will let you know why this is a perfect solution for both you and your buyers.

What is seller financing?
Seller financing is basically a loan that is provided by the current business owner to the new owner. The deal involves short-term promissory notes between the seller and the buyers. The buyer is required to pay a down payment which is predetermined and agreed upon. Our business brokers Orange County will help pick the best terms. We will also help with promissory notes making them creative and detailed.

In commercial business sales La Habra, most of the transactions we handle at So-Cal Business Brokers require buyers to make a down payment of not less than 50%. The industry standard is 40 to 50 percent of the agreed selling price. The balance is then paid over an agreed period of time which could be 3, 5 or 7 years. We will also help you earn an interest on the loan. The interest rates are between 4% and 7%.

Pros and cons
We know that seller financing is a term that gets negative reaction from sellers but we will help you understand why it is a good thing for you. Although seller financing will keep you from getting the full amount fast, you will earn a good interest. With us, you will be able to sell for a price much higher than what your business is really worth. In addition to that, offering seller financing gives you a stronger position when asking buyers for a better sale price. You will also be able to get the best buyer much faster with seller financing.

Buyers know you are required to sign personal guarantee for the loan. Our in-house transactional attorneys will help with this. We also put in measures to protect you in case of default in loan payment. We take precautionary measures to prescreen buyers and ensure they are qualified to participate in seller financing.

Do you want to learn more about seller financing? Visit our website and schedule a free consultation with one of our experienced business brokers. We are always happy to hear from you.

Commercial Business Sales La Habra