| Buy a Business with Seller Financing |
|
1. Better Loan Terms from Banks
Deals involving seller financing are more attractive to lenders, since it mitigates risk of the seller bailing out. Lenders feel more confident funding acquisition deals that involve seller financing.
2. Large Equity Coverage
According to the SBA's standards, seller financing counts towards 10 percent of the overall equity required for buying business.
3. Capital Gains Savings
Capital gains tax is 35 percent of the gains. Through seller financing, the seller receives money incrementally rather than one lump sum payment, substantially lowering the tax liability. |
Small Business News 
Apple Expanding into Small Businesses
2010-07-30 12:36:39
Apple Inc is planning to undergo a major expansion. The company that has products like the iPhone and the iPad is now targeting small business. They are planning to hire engineers in at...
Business Credit Cards Easy to Get, But Won’t Help Economy
2010-07-29 12:32:54
We’ve heard how difficult it is for small businesses to secure bank loans, a new Fed report says that banks have been very willing to issue small business credit cards.
About 75 percent of applicants in...
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