The usual structure
Buyers typically contribute part of the price, lenders fund a share based on the target's cash flow and assets, and the seller agrees to defer the remainder.
Why seller finance helps
A seller who leaves money in the business signals confidence, and lenders treat that as support for their own lending.
Do not overload the business
Debt repayments must be affordable from the target's own cash flow, with room for a bad year. Model the downside before signing.
Frequently asked questions
How much deposit do I need?
It varies, but many lenders want the buyer to fund a meaningful share of the price.
Can assets in the target be used as security?
Yes. Receivables, stock and property often support the acquisition debt.
Last reviewed: 2026-10-15