Financing the Business Sale

Early on in the negotiation process, you'll need to determine where the buyer is going to get the money to purchase your business.

• Seller financing: of course the most obvious source of financing is you. Seller financing is involved in up to 90 percent of small business sales and more than half of mid-size sales, and if you're not willing to finance at least some of the price, you may not be able to sell your company.
• Third-party financing: if the buyer is planning to obtain outside funding, the bank or other lender should confirm to you that the buyer is qualified and that the lender is willing to come up with the money before negotiations go too far.