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Is business financing amoritized like residential? 20 year? 30 year?

A business seller is seeking to sell a business to me with option of seller financing. He is asking $200k. I am proposing terms of 20% down, 5% p/i, 7 year term, amortized in 7? Should I be amortizing 15yr, 20yr, 30 yr?

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Answers (2)
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Thanks Jeff and R A.

Jul 14, 2010
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R A

Business finance terms usually don't go beyond 5 years but if the owner will accept the terms and your sure you want to be indebted to him for that long, then just make sure you get a contract signed.

Jun 30, 2010

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