20 Golden Nuggets - Vendor Financing.

14. Seller Financing -  Good Deal or Risky Move?

Seller financing is when you agree to finance part of the purchase price, allowing the buyer to pay you over time rather than in a lump sum. While this can make your business more attractive to potential buyers, it also comes with significant risks.

The main advantage is that seller financing can help close deals that might otherwise fall through due to financing issues. It also shows that you have confidence in your business’s future performance. However, the risk is that if the buyer defaults, you may not receive the full sale price, leaving you in a difficult position.

If you decide to offer seller financing, make sure the terms are clearly defined and that you’re protected legally. Consider requiring a down payment and securing the rest of the payment with collateral.

Golden Nugget -  Seller financing can help close a deal, but it comes with risks. Only offer it if you trust the buyer and protect yourself legally.