What are the most common structures for seller finance?

February 10, 2025
by a searcher in Lawrence, NY, USA
what are the most common structures for seller fiancé interest rate, earn out and rollover equity etc and is the term of the loan the same usually as the SBA loan?
Thanks
Thanks
from University of Southern California in Los Angeles, CA, USA
Structuring them correctly can help reduce your cash injection while keeping the deal bankable. To ensure the seller note counts toward your equity injection, make sure:
✅It’s on partial standby for at least two years (interest can accrue but no payment is made)
✅ It’s subordinated to the SBA loan
✅ It’s fully amortizing with no balloon payments
✅ It has a term similar to the SBA loan
I would love to help you with your SBA loan. We work with all the major SBA lenders. When lenders compete, you win! You can reach me here or directly at redacted You can also click here to schedule a meeting with me: https://cal.com/ishan-jetley-3d73m8/30min. Look forward to chatting!
from University of Alabama in Birmingham, AL, USA