100% Seller Financing?

January 23, 2026

by a searcher from Massachusetts Institute of Technology - MIT Sloan School of Management in Los Angeles, CA, USA

Has anyone successfully completed an acquisition via 100% seller financing? Interested in learning about your experience and learnings. The opportunity is not SBA eligible, and too small for traditional commercial lending teams or private credit to look at.

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Reply by a searcher
from The Juilliard School in Danbury, CT, USA

If someone is willing to offer 100% seller financing and they aren't a close friend or family member, you should be extremely careful. It's more than likely not a deal worth pursuing or it has some real skeletons hiding in the closet. Be careful!

Reply by an intermediary
from Simon Fraser University in Vancouver, BC, Canada

I have! There are tradeoffs. I think it's a great negotiation tool. There are a lot of ways to structure the payback for tax efficiency and bolster vanity numbers (greater value net of tax, greater rates than the bank, can do a greater price, etc.) You touched on the top angle: "look, it's a great company and I really want to get to the price you want for it, but <bank issues> because <valid company issues> (unauditable, QoE or other DD too expensive for deal size, etc.). We could do this faster and cheaper if you played bank." It can make a lot of sense for both parties from many angles. It's also a great way to raise the stakes/put the seller's skin in the game, shining a light on any BS the seller has been trying to push ("Don't you trust that the business will continue to make profits/grow with ease, as you've been saying? Why wouldn't you bet on that and make more money?") The issue I had is getting "deal heat" and rushing to get a deal done on a on 100% seller financing, thinking it's risk-free. In reality, I ended up with something closer to a distressed asset. It was done through an SPV and the financing contract from acquired co -> buyer, so I could have defaulted without issue, but sunk cost fallacy & too much entrepreneurial hopium. Just don't get deal heat and be open to pulling the plug.

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