Step 1 — Your Business Numbers
Fill in what you know. Every field updates your income picture in real time.
Total gross sales last 12 months
Salary + add-backs + net profit
Earnings before interest, taxes, depreciation
Owner's listed or target sale price
Your offer — all financing math runs on this
Industry norm for trades businesses
Locks to Proposed Price ÷ EBITDA
Cash seller receives at closing
Typical seller carry: 5–9%
How long payments come to seller
Used for installment sale comparison
Business Valuation Snapshot
Revenue Multiple (Ask)
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Ask ÷ Revenue
SDE Multiple (Ask)
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Ask ÷ SDE
Market EBITDA Multiple
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Industry benchmark → —
⭐ Proposed EBITDA Multiple
—
Your offer → —
Down Payment at Close
—
Cash in hand, day one
Note Balance Carried
—
Earning interest for seller
Deal Gap Bridge
Yes, the proposed price is lower than asking. Here's how interest income closes — and often exceeds — that gap.
📊 From Asking Price to Total Collected
Every bar below represents money flowing to the seller. Watch the gap disappear.
Asking Price (reference)
Price Gap (ask vs. proposed)
Down Payment at Close
Note Payments (principal)
Interest Income Earned
Seller Collects vs. Asking Price
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Seller Collects vs. Proposed Price
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The interest income you earn as the bank effectively closes the gap between what you asked and what you're being offered — and often puts you ahead.
Lump Sum vs. Carrying the Note
Here's the real question: which actually puts more money in your pocket?
If a Bank Buyer Closes
Traditional Bank Sale
Gross Sale Proceeds—
Capital Gains Tax (all at once)—
Net After-Tax Proceeds—
Monthly Income After Sale$0 / mo
Close Timeline60–120 days
Deal Fall-Through RiskHIGH
Seller Holds the Note
Seller Financing
Cash at Closing (Down Payment)—
Total Interest Earned—
Total Collected Over Term—
Monthly Payment to Seller—
Quarterly Payment to Seller—
Annual Payment to Seller—
The Installment Sale Tax Advantage
📊 Spreading Your Gain = Keeping More of It
With a traditional sale, the IRS taxes your full gain in one year. With seller financing (an installment sale), your gain is spread over the life of the note — meaning you pay taxes only as payments come in. For many sellers, this drops them into a lower bracket each year.
Bank Sale Tax Bill (Year 1)
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Full gain taxed all at once in the year of sale
Avg. Annual Tax — Installment
—
Spread across — years — far more manageable
First Year Cash Tax Saved
—
Money that stays in your pocket — not the IRS — year one
Net Installment Sale Total
—
After estimated taxes spread over term
* Estimates only. Consult your CPA or tax advisor. Installment sale rules vary based on asset type, basis, and depreciation recapture.
Your Payment Schedule
Every payment below comes directly to the seller — not a bank, not an institution.
| Period | Payment to Seller | Interest Earned | Principal Returned | Cumulative Received | Remaining Balance |
|---|
Your Concerns — Answered Directly
Every seller we talk to raises these questions. Here's the honest truth.
💭"I want all my money now."
We hear this every time — and it makes sense. But when you run the numbers, you actually collect more with seller financing. You get a meaningful down payment at closing, then steady payments every month — often more than the lump sum after taxes. It's not less money. It's more money, delivered like a paycheck.
⚠️"What if the buyer defaults?"
This is where seller financing is actually more powerful than a bank sale: if the buyer stops paying, you get your business back. The promissory note and security agreement give you a legal claim to reclaim the assets — often faster and cheaper than a bank foreclosure. You've already kept the down payment and all payments made. No bank gives you that option.
🚪"I don't want to be involved anymore."
Seller financing does not mean running the business. It means you hold the loan — like a bank does. You collect payments. You're not answering service calls or managing techs. The degree of transition involvement is structured together — typically 30–90 days, then you're free.
❓"I don't understand how it works."
Simply: you become the bank. Instead of the buyer borrowing from Wells Fargo, they borrow from you. You receive a legally binding promissory note, secured by the business assets. A title company or attorney handles the paperwork — just like a real estate closing. You sign, they sign, you get your down payment, and payments start coming in.
Why Smart Sellers Choose This
You Collect More Total Money
Interest income on top of your purchase price means seller financing almost always yields more than a lump-sum bank sale — especially after taxes.
Retirement Income You Can Count On
Monthly or quarterly payments create a predictable income stream. Many sellers describe it as "paying myself a salary" from the business — without working in it.
Installment Sale Tax Savings
Spreading the gain over years keeps you out of the highest tax bracket. In many cases, sellers save tens of thousands compared to paying all at once.
Faster Sale, Higher Effective Price
Seller-financed deals close faster and attract more qualified buyers. Sellers who offer financing often command better terms — because they're removing the biggest barrier to buying.
Your Business Back If They Default
If the buyer stops paying, your security agreement lets you reclaim the business. You keep the down payment and all prior payments. No bank gives sellers this protection.
Your Legacy, Protected
A motivated buyer who knows you can take it back will work harder to make the business succeed. Your customers, your team, your reputation — all protected.
You Built Something Valuable.
Let's Make Sure You're Paid What It's Worth.
Seller financing gives you more money, better tax treatment, a guaranteed income stream, and the ultimate safety net — your business back if anything goes wrong. Let's walk through your numbers together.