When we asked selling brokers if it really is possible to buy a small business with no money down, that is, with 100% seller financing, most of them answered that was possible, but that it won’t be easy, noting, “Most sellers may have been waiting for 20 years to sell or retire and won’t want to wait longer to get their cash out.” But you never know; you just might find someone willing to help you get started if they see that you will be able to pay them off in only a few years.

So that is the key to buying a business with 100% seller financing — finding a seller who really needs to sell. 

Look for a business that has been on the market for a long time; in that sense, it’s not unlike getting a  good deal on a house that has been on the market too long. Check the web under Businesses for Sale, as there are a number of businesses who sell businesses.

If you do find a what looks to be a viable business for sale, then the key is to speak with your accountant or lawyer. Have them do a background check on the business and the owner. Do your due diligence. But also, don’t expect to get a great deal – a seller who finances the sale will not negotiate beyond that in all likelihood.

“But remember” said our broker, “the danger of finding a seller willing to do 100% financing is that the business may not be very viable.”

Rather, he noted, partial seller financing is far more commonplace, and likely to happen. In fact, Handlesman noted, “if you have some money, or some financing lined up, it’s a buyer’s market. There are distress sales out there.”

If you want full or partial seller financing, the experts gave these final tips:

So yes, buying a business is a good idea, and no money down, 100% seller financing, is a possibility.

Source:  https://www.theselfemployed.com/start_ups/how-to-buy-a-business-with-no-money-down/

First Published Nov 25th 2015