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Wednesday, May 14, 2008

Daily Observation - Seller Financing

During my coaching call today with one of the M-Team members we discussed the importance of Seller Carrybacks in Small Business Loans. I stressed that every deal going forward should have some component of a Seller Carry Back for the following reasons.

1. It helps the borrower with his down payment cash requirements.
2. It gives the bank a comfort level knowing that the seller is still involved in the business.
3. It gives the buyer/borrower a comfort level knowing that the seller still has a financial stake in the sold business which benefits the buyer, note payer, that the seller will offer additional training, coaching, etc.

Seller Financing is a win win, and should always be encouraged.

For more details on Seller Carrybacks click here Seller Carry Back Notes

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