Tag

seller note

3 insights

The Seller Note Counts as Equity, or as Debt. The Terms Decide.

On an $18 million acquisition, the same $3 million seller note moves the buyer's cash at closing from $4.2 million to $7.2 million, depending on whether it is on full standby. SBA rules for the same question changed on October 1.

Financing Strategy Borrower Advisory

Horizontal bar chart of three survey figures from the second quarter of 2026. Ninety percent of buyers expect seller financing to play a role, seventy-eight percent expect financing backed by the U.S. Small Business Administration, shown in the darkest navy as the value argued, and twenty-nine percent of owners plan to provide seller financing.

Seventy-Eight Percent of Buyers Have the Same Financing Plan

Nearly eight in ten buyers expect to fund an acquisition through one government-guaranteed program, and ninety percent expect a seller note that only twenty-nine percent of owners plan to write.

Capital Markets & Trends Borrower Advisory

Three small stacked columns funding the same $18 million purchase price, showing buyer equity at close of $9 million on an all-cash deal, $5 million when the seller note pays current interest, and $3 million when the seller note sits on full standby.

Same $18M Price. Three Different Equity Requirements.

Two buyers agree the same $18 million price for the same business. Depending on how the deferred consideration is structured, the cash the buyer needs at close is $9 million, $5 million, or $3 million. The price never changed.

Financing Strategy Borrower Advisory

Working through a financing decision?

Insights are a starting point. A conversation maps your actual options.

Tell us what you are financing and we will map the structures and sources that fit.

Submit your financing request →

Explore our financing solutions

Equipment Financing Working Capital Asset-Based Lending Strategic Debt