Learn about seller financing in sale transactions from new article by Thomas Budnik!
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Seller financing, aka owner financing, is when a loan is from the seller to the buyer in lieu of cash, so that the transaction can close. The seller is essentially being the bank. Many Advisors scream "No" but if structured correctly, it can be a great advantage to the seller/owner in numerous ways, and is a great method to increase the valuation received for the business. Why get just one bite of the apple when there is more there? Again done correctly is the key. And having been there done that, and a part of both successful and problematic seller financing transactions, we understand what is necessary and ideally positioned to assist our clients with these methods that open up many new options for an Exit. Stony Hill Advisors, Inc. Roy Y. Salisbury Geoff Miller Paul Visokey Dave Severance Scott Rother Joseph Radic
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Read Steven Kurtz's latest article "DIP Em and Dump Em: Small Business Chapter 11 Cases and MCA Lenders" for the International Factoring Association's the Commercial Factor! https://lnkd.in/eeTNudWA #legalnews #factoring #chapter11 #smallbusinesses
DIP Em and Dump Em: Small Business Chapter 11 Cases and MCA Lenders — IFA Commercial Factor
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Why Vendor Financing Can Be a Risky Move for Your Business I recently spoke with a client who attended a seminar promising to "build a business empire with no money down" and learned about vendor financing. From my experience, vendor financing often ends up being more trouble than it's worth. Here’s why: Red Flag Alert: If buyers need vendor financing, it usually means they don’t have enough funds to cover the full purchase price. This should raise concerns about their ability to successfully manage and grow the business. High Risk for Sellers: Vendor financing means you're taking on significant risk. You're selling your business to someone who might struggle financially, with their payments often unsecured and dependent on their ongoing success. Ongoing Ties: As a vendor, you're still tied to the business through the installment payments, hoping the buyer continues to make a profit and pay you. Potential Disputes: If the buyer is dissatisfied or the business doesn’t perform as expected, disputes and costly litigation can arise, complicating the sale further. Think twice before considering vendor financing—it might seem like a solution, but it often leads to more problems than benefits. 💼🚩Eric Kalde - Legal Author - Kalde Legal #VendorFinancing #BusinessTips #EntrepreneurAdvice #businessgrowth #businesstips #financestrategy #entrepreneurship #vendorsfinancing #financialadvice #vendorpartner #startupadvice #businessexpert #salesexpert
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Critical Elements of a Letter of Intent (LOI) https://zurl.co/FLwF #buyingabusiness #LetterofIntent #businessbuyers #mergersandacquisitions #closingdeals #transactions #experttips
Critical Elements of a Letter of Intent (LOI)
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Understand what a letter of intent (LOI) is, when it is used, and what provisions are normally included. Discover red flags seller's should watch for and what to expect after the LOI is signed.
Understanding Letters of Intent | DealStream
dealstream.com
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Business Acquisition Challenges early in the hunt: 1. Getting plugged into the deal pipeline upstream, which means trying to find the right M&A firm that has a bead on the deals early . This seems to be about building relationships. 2. Financing - buyer will be looking for smaller banks and credit unions who have SBA preferred lenders. This will take out a step once the buyer actually finds a business to buy Looking for two or three banks with this requirement. I already see challenges with banks making loans in the current environment. The other possibility is Seller Financing: buyer has the ability to negotiate terms directly with the seller, offering them better return than traditional investments. This could work in the buyers favor with no money down or better terms than banks. It will take the right seller however, as most sellers want money up front on close.
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Real Estate + Seller Financing = Note Investing. Organic, Free Range Solutions for Sellers, Buyers & Passive Investors
The Expert Way to Seller Financing with Dawn Rickabaugh
Meet Dawn Rickabaugh
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Buy the Small Business You Helped Build » Employee Buyout Finance Advisor » Keeping the SMALL in Small Business
Business Buyers: Knock, knock. Who’s there? Lease. Lease who? Lease hurry up and negotiate those terms, or the SBA won't let us close the deal! -Deb 𝙏𝙧𝙖𝙣𝙨𝙛𝙤𝙧𝙢 𝙮𝙤𝙪𝙧 𝙚𝙣𝙩𝙧𝙚𝙥𝙧𝙚𝙣𝙚𝙪𝙧𝙞𝙖𝙡 𝙫𝙞𝙨𝙞𝙤𝙣 𝙞𝙣𝙩𝙤 𝙧𝙚𝙖𝙡𝙞𝙩𝙮 – 𝙄 𝙨𝙥𝙚𝙘𝙞𝙖𝙡𝙞𝙯𝙚 𝙞𝙣 𝙨𝙚𝙘𝙪𝙧𝙞𝙣𝙜 𝙩𝙝𝙚 𝙛𝙞𝙣𝙚𝙨𝙩 𝙎𝘽𝘼-𝙗𝙖𝙘𝙠𝙚𝙙 𝙡𝙤𝙖𝙣𝙨 𝙛𝙤𝙧 𝙗𝙪𝙨𝙞𝙣𝙚𝙨𝙨 𝙗𝙪𝙮𝙚𝙧𝙨 𝙡𝙞𝙠𝙚 𝙮𝙤𝙪. Ready? Click Book An Appointment. #sba #negotiations #commerciallease #smallbusinessownership
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