What Is a Seller’s Note in a Business Sale in 2026: Interest, Term, Subordination, Personal Guarantee
What Is a Seller’s Note in a Business Sale in 2026: Interest, Term, Subordination, Personal Guarantee A seller’s note in a business sale is a subordinated loan the seller makes to the buyer to finance part of the purchase price. In 2026 lower-middle-market deals, seller notes typically cover 5-20% of price at prime + 200-400 […]
Seller Notes in a Business Sale: The 2026 Insider’s Guide to Structure, Interest, and Subordination
Seller Notes in a Business Sale: The 2026 Insider’s Guide to Structure, Interest, and Subordination A seller note in a business sale is debt the seller takes back as part of the purchase price, letting a buyer defer 10-30% of the cash payment over 3-7 years at interest. It bridges valuation gaps when buyers and […]
Seller Notes in Business Sales: When They Make Sense
Seller Notes in Business Sales: When They Make Sense Quick Answer A seller note is a promissory note where a business owner accepts a portion of the purchase price as scheduled debt payments rather than cash at closing, typically representing around 21% of the sale price in technology deals. They work best when a buyer […]