What Is a Seller Note When You Buy a Business?

The owner likes you, and they've offered to carry part of the price. That's a seller note.

A seller note means you pay part of the purchase price to the seller over time instead of all at closing. The rest usually comes from your own cash and a bank or SBA loan.

Lenders often like seeing one. It tells them the seller believes the business will keep running after they leave. But the lender will have rules about it. They may want the note to sit behind their loan, and SBA lenders have specific rules on when the seller can be paid.

So don't sign off on the note until the lender's seen it. Get the seller's offer in writing and send it with your file.

SixtyFour West places your deal with lenders whose rules it fits.