DON't reject seller financing when selling a business because of stupid reasons!

Guest post by: Scot Cockroft
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11 Important Points You Need To Know When Buying A Business - By Scot Cockroft

Many sellers of their businesses are refusing to seller finance their buyers from number of different reasons. And when asked why, one of the most common answers is: “I’ve heard all kinds of horror stories about seller financing”. And to be brutally honest, that reason is not only irrational, but it is simply stupid. Because horror stories are just that – stories.

Have you ever heard the one about the traveling salesman who goes out to a bar for a nightcap and wakes up in his hotel room with scars on his lower back – and his kidney missing? Of course you have; everyone knows THIS particular horror story.

Such urban legends – others call them myths or fairy tales – are often told around campfires and are good for an after-hours laugh or two. But what about those business urban legends that can give you pause when entering into an otherwise sound business investment?

Enter the seller-financing horror story!

Okay, okay, so everyone and his brother did heard about a “friend of a friend” that sold his business and carried the note and how he or she was jilted out of everything. How much of this story is true and how much is urban legend? This and 1,001 “horror stories” about seller financing you may have heard makes it hard to trust it as a valuable, reliable and above all safe investment opportunity.

Believe me: I have heard this reason for refusing seller financing more than enough times. And every single time, without fail, the person telling the story cannot tell me who, what, when, where or how this particular seller financing “horror story” happened. In my whole business broker career I never had a case where our client, the business seller, lost everything because of seller financing. I’m not the one who will say that such scenario is totally impossible to happen, but if your brokerage firm or intermediate takes his job seriously like we do, doing proper screening and evaluation of potential business buyers seller financing is a great way for additional income. First of all, giving your buyers the opportunity of seller financing will attract more potential buyers, and because of that is very likely that you’re be able to achieve higher selling price for your business. And second, with seller financing you will get additional income because of the interest rate the buyer will pay you. So don’t believe the horror stories, believe the facts. Hire an experienced and competent business brokerage firm and sell your business with seller financing for better price that you ever thought is possible.

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11 Important Points You Need To Know When Buying A Business - By Scot Cockroft

About the Author: Scot Cockroft

RSS for Scot's articles - Visit Scot's website
Scot Cockroft is the owner and president of Huntington Business Group Inc. a VR Business Sales firm in Dallas (www.vrbigd.com). Huntington Business Group was named #1 Business Broker in America in 2010 with Scot Being named "Deal Maker of the Year" by the Dallas Business Journal. Huntington Business Group, located in the heart of the DFW Metroplex, serves the entire Dallas-Fort Worth Metro area as well as North and West Texas. The company specializes in Business Brokerage, Mergers & Acquisitions, Business Valuation and Consulting services focusing on small businesses and mid-market companies . In 2007, Scot was named the Most Valuable Intermediary in the World. This is considered the most prestigious award within the industry. Scotâ€™s passion to serve business owners is unparalleled. He consistently provides clients with creative and innovative methods to market and sell their businesses. In fact, some of these methods for marketing and business presentation have changed the way businesses go to market. He is committed to a â€œdifferentâ€ type of business brokerage firm, one that is NOT about a sales pitch but, rather, results! In short, a business brokerage firm that is committed to performance-based compensation. Scot believes in these principles as well as a candid honesty with clients. His candid style often takes buyers and sellers by surprise, but is often what assures successful connections between the two. As the leader of Huntington Business Group in Dallas, Scot believes that each and every client deserves seasoned business professionals who provide the personal attention of a local office while also offering the resources of a world-wide organization. In addition to overseeing the recruiting, training, and mentoring of VR agents to assure their effectiveness, integrity, and ultimate success, Scot also serves on the board of several nonprofit organizations including Heritage Christian Academy.
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