What is Seller Carry?
The Short Answer
Seller Carry explained simply
Seller Carry means the seller lends money to the buyer to help them buy the business. Instead of the buyer getting a loan from a bank for the full amount, the seller agrees to be paid over time for a part of the sale price. This is often done to make the deal happen, especially if the buyer can't get a traditional bank loan for the whole amount. It shows the seller has faith in the business's future.
Real-World Example
The Coffee Shop Sale
Imagine Sarah is selling her coffee shop for $200,000. The buyer, Tom, has $150,000 in cash and a bank loan. He still needs $50,000. Sarah agrees to "carry" that $50,000. Tom will pay Sarah back over three years with interest. This helps Tom buy the shop and Sarah sell it.
Why this matters
Seller Carry can make it easier to sell your business. It opens up your business to more buyers who might not get full bank financing. It also shows buyers you believe in your business, which can build trust. For buyers, it can mean a lower down payment and more flexible terms than a bank loan.
Seller Carry can be a powerful tool to get your deal done. Just make sure you have a clear agreement in place, outlining the interest rate, payment schedule, and what happens if payments are missed. It protects both you and the buyer.
Seller Carry can be a powerful tool to get your deal done. Just make sure you have a clear agreement in place, outlining the interest rate, payment schedule, and what happens if payments are missed. It protects both you and the buyer.
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