seller financing interest rate?

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May 24, 2024

by a searcher from Northwestern University - Kellogg School of Management in Atlanta, GA, USA

Anybody know what a typical interest rate on seller financing is right now? May 24, 2024

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commentor profile
Reply by an intermediary
in Campbell, CA, USA
The interest rate is whatever the buyer and seller agree to. This is currently in the 5%-6% range for 3-4 years for the deals we do. If an SBA lender is involved, you're looking at a 10-year seller note with a 2-year standby.
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Reply by an intermediary
from The University of Chicago in Chicago, IL, USA
Seller financing is for price preservation and/or risk mitigation. hence, it's cost should be lower than senior debt.
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