Why use seller financing
It can expand the buyer pool, bridge a financing gap or help align seller confidence with future business performance. For the buyer, it reduces cash required at closing.
Price is not the only term
Interest rate, term, amortization, payment frequency, prepayment rights and default remedies all affect economics.
Use Flippa itself to verify current listings, pricing and platform details.
Seller credit risk
The seller is effectively extending credit to the buyer. Assess the buyer's ability to pay independently of optimistic business projections.
Security and guarantees
Transactions may involve security interests, personal guarantees or other protections, each with jurisdiction-specific legal consequences and enforcement limits.
Interaction with transition and earnouts
Seller notes, consulting obligations and earnouts can overlap. Keep each mechanism clear so performance disputes do not automatically become payment disputes.
Document professionally
Deferred consideration changes the legal and tax profile of a sale. Obtain appropriate professional advice before agreeing terms.