Seller Concern About Risk in Seller Note – Looking for Benchmarks & Mitigation Strategies

April 15, 2025
by a searcher from INSEAD in Dubai - United Arab Emirates
Hi everyone,
I’m currently in talks with a seller who’s expressed some discomfort with the idea of a seller note. He’s open to the concept, but is seeking reassurances to reduce his risk.
To help move things forward, I’m looking to:
1. Benchmark typical seller financing terms – % of purchase price, interest rate, repayment period, and any security structures used
2. Identify effective risk mitigants that have worked in your experience – e.g., guarantees, covenants, escrow, etc.
Would appreciate any benchmarks, references, or examples from the community.
Thanks in advance!
from INSEAD in İstanbul, Türkiye
from Eastern Illinois University in 900 E Diehl Rd, Naperville, IL 60563, USA