Bifalgorithm post

What if I told you the buyer of your company might ask you to finance part of your own sale? That's seller financing also called a vendor takeback or VTB. And while it doesn't sound appealing at first in Canadian small and mid-sized deals, it's often the bridge that makes the deal possible. Here's why banks in Canada are conservative, they won't usually finance goodwill, and they'll only lend up to a certain point. Seller financing fills that gap. Here's how it works. Instead of getting 100 percent cash at closing, you agree to take a portion of your proceeds in installments, usually over one to two years, with interest that typically matches the market rate. Buyers like it because it makes the numbers work. Sellers agree for two reasons. Sometimes it's the only way to close, and sometimes it bumps up the headline valuation, giving you a higher sale price on paper in exchange for carrying some of the risk.

What if I told you the buyer of your company might ask you to finance part of your own sale? That's seller financing also called a vendor takeback or VTB. And…