This is a great article. Thank you.
If the buyer is paying the seller back with money from the company on a monthly bases, how is that structured? The seller note is to the person, not the company. So how can the buyer use the company money to pay the seller back each month?
Seller financing is usually all about what you can negotiate. There are general seller financing terms, but the answer is really all about what the seller you’re working with can live with. You should read our article about seller financing to learn about how you can set it up and what the general terms typically are, but they’re generally in line with a normal business loan from a traditional bank.
You may need to structure the seller note as owed by the business you’re buying the assets with (unless it’s a stock sale), and then make the note personally guaranteed by you (or the buyer). That way it’s easier to pay for the note through the company every month. Depending on what business structure you’ve chosen, however, it may not matter. Good luck!
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