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Home > Tools and Resources > Ask the Expert > Seller Financing

Seller Financing

By Richard Parker | Diomo Corporation
Contact Richard Parker | Visit Website | About The Author

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Question:
I am looking at buying a business where the seller is offering 30% owner financing.  How is this typically structured?  What are the standard variables and negotiating points?

Answer:
While seller financing is something you always want in a deal, I would suggest that you shoot for at least 40%. Although deals vary, the note should generally be for five years, at around 6% - 8% with the ability to prepay at any time. I would also recommend: