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Seller Financing
How owner-financed transitions work — terms, structure, security, and what makes a seller note successful for both sides.
For Future OwnersFor Business OwnersFor Professionals
Seller financing — sometimes called an owner-carry note — is one of the most common ways small businesses change hands. The current owner accepts payments over time instead of a full cash payout at close, lowering the cash a buyer needs up front and signaling that the owner believes in the business's future.
Key points
- Down payments typically range from 10% to 30% of the purchase price
- Notes are usually 3–10 years at 5–9% interest, often Prime + a spread
- Frequently combined with SBA loans to bridge the funding gap
- Personal guarantees from the buyer are standard
- The seller holds a security interest until the note is paid
Read the full Seller Financing guide
A complete walkthrough with structure, examples, FAQs, and what to watch for.
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