Seller Financing

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Definition

Seller Financing refers to buying a business that has already been established. With the elimination of early startup costs, you would already tap into an enterprise that has a recognized customer base, employees, overhead, and inventory. Specifically, seller financing is the means of financing in which you do not purchase the entire business up front; rather, this type of financing means paying small monthly payments to the seller of the business, similar to the way you would make loan payments to a bank.