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Seller carry backs

What kind of rates should we expect to pay a sellering carrying back 65% for 3 years. We're putting 350k down; no bank financing. Just down and seller note. Buyer is strategic with very strong balance sheet and so 0 risk of default.

Tim Kruse

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Answers (2)
Leon Parker
New Hampshire Business Sales, Inc.
President - co-owner
Merrimack County, NH

Given the low rates now for commercial lenders seller financing has to be at lower than the historically common 10%. Current Seller financing rates appear to range from 6% to 8%.

The other answer of course is "as low as the seller will accept".

Apr 2, 2009
Gregory S. Ellwood, CBI CVB
Sunbelt Business Brokers of NOVA
Loudoun County, VA
Premium Broker

Typical seller notes are paying 7% - 8% currently in the markets. Make sure you get a personal signature for the guarantee.

Greg Ellwood
Sunbelt Business Brokers of Northern Virginia

Apr 2, 2009

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