BTB Buyer Guide
Seller Financing in a Business Purchase
Seller financing means the seller agrees to receive part of the purchase price over time instead of receiving the entire amount at closing. The note becomes one component of the acquisition's capital structure.
BTB guide · Updated September 30, 2026
Model the whole structure
The headline seller-note amount is not enough. Buyers should understand the interest rate, amortization or payment schedule, maturity, security, guarantees, subordination and interaction with other financing. In BTB, seller financing should be modeled alongside bank debt and other sources so total debt service and cash needs are visible.
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Educational information only. Verify transaction, legal, tax, accounting and lending questions with qualified professionals and current source material.
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Business buying guide · SDE explained · Valuation guide · Due diligence · Seller financing · Making an offer