Should I offer seller financing when I sell my shop?
Seller financing means you let the buyer pay part of the price over time. It can help a deal happen, but you're taking on risk: if the shop struggles, you might not get paid.
If this sounds like youYou want to get paid fully, but a buyer asked if you'd carry part of the price. You're worried about getting burned.
What you can do.
All cash at closing
Simplest and safest. You're done on day one.
A small piece financed by you
Can bridge a gap, with some risk.
A larger piece financed by you
More risk. Know your buyer very well.
Sell the building, finance the shop
Gets you real money now from the property.
What to watch for.
- Ask your own lawyer how you'd be protected if the buyer stops paying.
- Ask your own CPA how getting paid over time affects you.
- Know how the buyer plans to run the shop. Your payments depend on it.
Owner to owner, and it stays private.
Lotus buys shops and their buildings in Massachusetts and Connecticut and runs them for the long term. We'll walk you through how we'd structure a deal, plainly, so you can take it to your own CPA and lawyer. Talk with James.
James StephensonLotus, Massachusetts and Connecticut
Quick answers.
Is seller financing common for repair shops?
It's often part of smaller business sales, especially with first time buyers.
What happens if the buyer can't pay me?
That depends on the paperwork. Have your own lawyer set it up to protect you.
Thinking about what comes next for your shop or building?
Reach out and we’ll talk it through. No pressure, and the conversation stays private.
james@lotuspe.us