Approaching a business broker about buying seller financed notes?
Anyone have any tips for how to approach business brokers, to find out what businesses they’ve helped sell with seller financing, may consider selling the notes?
It’s my experience that business brokers are more than willing to discuss any past deals and potential future deals with you. Most will walk through your unique situation with your business and answer any questions you have. You should be direct and upfront about exactly what you’re looking for when you meet with them the first time.
Seller financing is a very common practice among small businesses. It’s sought after by SBA lenders, which is the number one financing source for buyers who don’t have the funds to buy the business. Seller financing often bridges gaps to get a deal to closing. Business brokers specialize in the small business space, so they’ll be very familiar with seller financing, and likely have completed many deals in the past that involved it.
You may need to do some research when it comes to finding a broker that has sold notes, however. There are some secondary markets and plenty of buyers for these types of notes, but you’ll need to find a broker who is connected with those crowds of investors. You may be better off finding an business attorney who has some connections with those investment firms or wealthy individuals who are willing to buy seller notes.