When you sell a business, property or land, the price is only half the deal. The other half is how you’re paid: all at closing, over time, or a mix. Here’s how each one works, and a calculator to see what payments over time could look like.
None of these is right for everyone. What fits depends on how much you need at closing, whether monthly income appeals to you, and your tax situation.
The buyer pays the full price at closing.
You act as the bank for part of the price.
Most of it at closing, the rest over time.
Move the sliders to try different terms. The numbers update as you go. Nothing you enter here is saved or sent anywhere.
Illustrative only. This assumes equal monthly payments and on-time payment, and leaves out taxes, closing costs and fees. It isn’t an offer, a quote, or legal, tax or financial advice. Real terms are negotiated and put in writing for your attorney and CPA to review.
Seller financing is common in small business and real estate sales. These are the standard safeguards.
Price, down payment, interest rate, term, payment date, late fees, and what happens if a payment is missed, all agreed before anyone signs.
The note is typically secured by the property (in Georgia, a security deed) or, for a business, by a security agreement on its assets.
Every deal closes through a licensed attorney or title company. Payments can be collected by a third-party loan servicer so you have a clean record.
Any structure is proposed in writing so your attorney and CPA can review it before you sign.
For businesses: part of the price is paid later, tied to how the business performs after the sale.
The buyer takes over payments on your current loan. Most loans have a due-on-sale clause, so this needs careful attorney review.
The buyer leases first and has the right to buy later at an agreed price.
You keep a stake and share in what the asset earns or sells for later.
It carries more risk than all cash because you are paid over time. Sellers manage that risk with a meaningful down payment, a note secured by the asset, written default terms, and a licensed attorney or title company handling the closing.
Rates are negotiated between buyer and seller. The IRS sets minimum rates for seller-financed sales; if a note’s rate is below the minimum, part of the price can be treated as interest for tax purposes. Your CPA can tell you the current minimum.
Generally, an installment sale lets you report the gain as payments come in instead of all in the year of the sale. Some items, such as depreciation recapture, may still be taxed in the year of sale. Confirm the details with your CPA.
That depends on the note and security documents you sign. A secured note generally lets the seller enforce it against the property or business assets under state law. Your attorney should explain the remedies before closing.
Often, yes. There are investors who buy seller-financed notes, usually at a discount to the remaining balance.
Price and terms are usually negotiated together. Flexible terms can support a different price than an all-cash sale. We put the options side by side in writing so you can compare.
Check your deal against our criteria in about 30 seconds, or submit it and we’ll lay out the options in writing. Every submission is reviewed within 48 business hours. Submitting is confidential and doesn’t guarantee an offer.