The BizBuySell Small Business Community

  • Get Expert Advice

  •  • Find Local Service Professionals

  •  • Share Your Experiences

When making an offer should I put any earnest money down and how much?

Also, what types of contingencies should I include?

No User Photo

Answer This Question

max 5000 characters

Web Reference (optional)

e.g., ""

Review Community Guidelines

Help keep our Community clean and on topic. The BizBuySell Community is a place where you can discuss your questions, concerns and knowledge with others you can trust. It is not OK to use this forum to solicit others for personal or financial gain, or to rant about personal issues. It's all in the guidelines.

Submit Your Answer
Answers (6)
No User Photo


We have provided over $1 Billion in business loans to over 15,000 business owners just like you. We use our own designated risk technology to provide you with the right business loan so you can grow your business. Our services are fast and reliable, loans are approved within 24 hours of successful application. We offer loans from a minimum range of $5,000 to a maximum of $500 million.

Do you find yourself in a bit of trouble with unpaid bills and don’t know which way to go or where to turn? What about finding a reputable Debt Consolidation firm that can assist you in reducing monthly installment so that you will have affordable repayment options as well as room to breathe when it comes to the end of the month and bills need to get paid? Dr. Ezra Sebastian Loan Home is the answer. Reduce your payments to ease the strain on your monthly expenses. Email (

DO YOU NEED 100% FINANCE? we give out loans with an affordable interest rate of 2%
EZRA SEBASTIAN LOAN HOME, ( aims is to provide Excellent Professional Financial Services.

Our services include the following:

*Truck Loans
* Personal Loans
* Debt consolidation loans
* Car Loans
* Business Loans
* Education Loans
* Mortgage
*Refinancing Loans
* Home Loans

We give you loan with a low interest rate of 2% and loan duration of 1 to 30 years to pay back the loan (secure and unsecured). Do not keep your financial problems to yourself in order for you not to be debt master or financial stress up, which is why you must contact us quickly for a solution to your financial problems. It will be a great joy to us when you are financially stable. Email (

NOTE:Bear in mind that it will only take less than 24 Hours to process your file is 100% Guaranteed no matter your Credit Score.

Yours Sincerely,
Dr. Ezra Sebastian
+1 (850)846-6235
We are certified and your privacy is 100% safe with us. Worry no more about your loans or finances.

Get your instant loan approval

Jul 12, 2017
No User Photo

We are financial consultants to a group of investors whom we have their consent to manage their funds which is in our custody for cooperation in joint venture business investments.

Our areas of interest include Property Development and real estate, Health Care, Education and training, Mining and exploration, Energy, oil and gas,Technology, Software development, Agriculture, Manufacturing, Finance Services and Leisure.However, all viable proposals within reason will be considered.

Funds shall be made available to you as a direct investment loan at 3% interest rate per annual for a period of 2 or 30 years depending on what you prefer. You may contact us if you have interesting investment proposal for possible business collaboration for our study.

We look forward to your reply to enable us provide you with details or you may visit our website.

Kindly acknowledge receipt of email.

Thank you.

Yours Sincerely
Jesse Peterson
phone: (980) 239-7539

Jul 5, 2017
Steven St
World Business Partners, Inc
Los Angeles County, CA

P.S. Make sure your deposit is with a neutral source.

May 21, 2009
Steven St
World Business Partners, Inc
Los Angeles County, CA

Don gave a lot of good advice. I would only add that you have to weigh the offer from all sides. Are you giving the Buyer close to their price? Are you asking him to take back a large part of the sales price? Are you asking for a long or short settlement date? The size of your deposit should reflect the overall offer you are making.

Other contingencies should be discussed with your attorney. It is possible to buy a business without an attorney but its really really really foolish. A good business attorney will save you far more than they will cost you and be able to complete a deal that leaves you in a good position and not worrying two years down the road about being sued and losing everything.

Ive seen it with my own eyes before. Get the best attorney you can afford. Usually in a business deal no one is on your side except your attorney - it will be money well spent.

May 21, 2009
No User Photo
The BAF Group LLC

There is no legal requirement; 10% is common, but when a business is larger, 10% might be far too much to place in escrow, simply because tying up too much of your money would be foolish, particularly if settlement is months away. We are doing a $700,000 bar right now, and $10,000 is okay, even though it is far, far below the 10%threshhold because the Buyer will settle in 45 days. The key though, is to offer to settle quickly and to provide proof that you can do the deal from a financial standpoint, if you are offering a lower amount like that.

When people suggest they want to lowball the price, I tell them that they should then think about making a larger deposit. If they want the Seller to hold the note, or agree to other terms that put the Seller at risk or at a financial disadvantage of some sort, I always suggest they put more money into the deposit, so that the Seller will realize the Buyer is, in fact serious. Even beyond the deposit, if you are asking the Seller to make some sort of accommodation or sacrifice, it is always best to try to offer some accommodation of your own, in order to make the Seller feel like you are not just trying to take advantage of him/her.

May 20, 2009
Carl J. Cusano, MBA, CBI
Capital Business Advisors, Inc.
Albany County, NY
Premium Broker

Yes, earnest money is almost always required. A reasonable amount is 5% to 10 of the purchase price.

May 20, 2009

Start a Discussion