Here is one of the most surprising numbers in the business for sale market right now: 90% of buyers expect seller financing to be part of their deal, but only 29% of owners plan to offer it, and almost half say they will not offer it at all (BizBuySell Insight Report, Q2 2026).
That gap is costing sellers deals. Let’s talk about what seller financing is, why buyers want it, and how to protect yourself if you offer it.
What is seller financing?
Instead of receiving 100% of the price at closing, you receive most of it, and the buyer pays you the rest over time with interest. That IOU is called a seller note. It is secured by the business itself and usually by the buyer’s personal guarantee.
Why buyers (and banks) want it
- It shows you believe in the business. If you are willing to be paid out of future profits, the buyer trusts the numbers more.
- It closes the money gap. Most buyers use an SBA loan, and the SBA requires them to bring at least 10% of the price in cash for a full purchase.
- It can count toward that 10%. Under the SBA’s current rules (SOP 50 10 8, in effect since June 1, 2025), a seller note can cover up to half of the buyer’s required injection, as long as it is on “full standby,” meaning no payments for the life of the SBA loan.
- It keeps you invested in a smooth handoff. Buyers like knowing the seller wants them to succeed.
How a typical deal might look
Every deal is different, but a simple example: on a $1,000,000 sale, the buyer brings $100,000 in cash, an SBA lender provides $800,000, and the seller carries a $100,000 note. You receive $900,000 at closing and the rest over time with interest. A modest seller note like this can be the difference between an approved loan and a declined one.
How to protect yourself
- Know your buyer. Review their experience, credit and finances before agreeing to carry paper.
- Secure the note. A lien on business assets and a personal guarantee from the buyer.
- Keep it reasonable. A note that is a smaller share of the price, with a fair interest rate and a clear schedule.
- Understand standby terms. If your note sits behind an SBA loan, you may wait years for payments. Factor that into your planning.
- Use professionals. Your attorney and CPA should review the note, and your CPA can explain how installment payments may spread out your taxes.
The bottom line
Offering some seller financing widens your pool of buyers, strengthens SBA approvals, and often helps you hold your price. It is not right for every seller, but it should be a decision you make on purpose, not one you rule out by default.
Every business owner should know what their business is worth today. Call Arlene at (423) 534-9890 or send us a confidential message. Complimentary, confidential and no obligation. We reply within one business day.