This interpretation has some basis in fact. The primary reason that sellers shy away from offering terms is their fear that the buyer will be unsuccessful. If the buyer should cease making the payments, the seller would be forced to take back the business.
The seller who operates under this fear should take a hard look at the positives associated with seller financing:
2) The interest on a seller-financed deal will add to the actual total sales price. With interest rates currently as low as they are, sellers can get a much higher rate from a buyer than they can get from any financial institution.
3) The tax consequences of accepting terms can be advantageous when it comes to the Seller’s capital gains.
By lending a helping hand to the buyer, you can help yourself as well.
Finally, securing the services of a good business broker to help the Seller navigate through the structure of their business sale can be good preventative medicine. Although there are no guarantees, sound guidance when it comes to down payment, debt service and buyer due diligence can go a long way to maximize your sale price and minimize the likelihood of getting the business back after it is sold.