When a seller offers seller financing, he or she is taking a risk. If you are a buyer, the seller is taking a risk on you, that you will be able to run the business successfully.  Therefore, other than a seller needing the cash from the sale of the business, the biggest obstacle to seller financing is the seller’s concern regarding whether a new owner will be able to pay off the loan from the profits of the business. While the seller already has the best idea about the potential profits of the business, there are some additional things a seller may want to learn about a potential buyer.

You may want to consider what would best demonstrate that you are a “good” risk and have the documentation ready to sell yourself.

  • Do you own your own house? If so, how long have you lived in it?
  • What is your work history? What experience will help you as a business owner?
  • How is your credit?  A seller may ask to see a copy of your credit report.
  • Can you supply business and personal references?  A seller may ask for them.

These are just a few ideas that will allow you to “sell yourself” to a business owner so they may feel better about offering seller financing.