Let me set the scene.
It’s 3:07 PM, I’m sitting in my truck outside a half-empty strip mall, staring at the dashboard like it just insulted my intelligence. My phone buzzes. It’s an email from my broker. Subject line: Offer Received. I don’t even open it right away. Why? Because I already knew the offer was gonna be weird.
And it was.
The buyer—let’s call him Mark—wanted to buy my business… but couldn’t pay the full amount upfront. He wanted to go the owner financing route.
Cue the sound of record scratching in my brain.
What Is Owner Financing? (And Why It Made Me Sweat)
Owner financing is basically where you, the seller, act like the bank.
Mark would give me a down payment, then pay off the rest over a few years, with interest. Sounds simple, right? Ha. That simplicity almost gave me hives. I like my money like I like my coffee—strong, upfront, and not delayed by flaky baristas.
But here’s the thing: the business had been on the market for months. Lots of tire kickers, few serious buyers. And this guy? He had operational chops, good credit, and a solid plan. Plus, he offered a decent down payment—enough to show he had skin in the game.
So I swallowed my pride, ran the numbers, and actually liked what I saw.
The Turning Point: When Risk Started Looking Like Opportunity
I sat down with my accountant (a man who could make a tax code sound like a bedtime story), and we walked through the pros and cons.
Turns out, with owner financing:
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I could set the interest rate. (I went with 7%. Spicy but fair.)
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I’d spread out the tax liability over several years instead of taking a big capital gains hit all at once.
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I’d keep a lien on the business assets as collateral, which gave me some peace of mind in case Mark went rogue.
It wasn’t just about getting out—it was about getting paid over time while the business still did its thing under someone else’s watch.
I remember telling my wife, “Babe, it’s like the business is still working for me… without me working for it.”
She raised an eyebrow. “So you’re still stressing over it, just for less money and no control?”
Fair point. But I wasn’t stressing—I was strategizing. 😉
Negotiating the Deal (AKA Playing Poker with a Smile)
Here’s where it got fun.
We negotiated over two weeks. Not in a boardroom. Not over Zoom. Over burgers, beers, and one memorable lunch at a place that served sushi burritos (still not sure how I feel about those).
I made sure to:
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Get a solid down payment. (No handshake deals. Cash talks.)
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Set clear terms. Interest rate, payment schedule, late fees—the whole shebang.
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Keep leverage. If Mark defaulted, I had the right to reclaim the business.
The contract was thick enough to use as a doorstop, but it was airtight. My lawyer even smiled when he signed off. That never happens.
A Few Months In… And I’m Still Smiling
Fast forward six months.
Mark’s running the business like a pro. I get a payment like clockwork every month. No surprises, no drama. Meanwhile, I’m taking walks, working on my next project, and—here’s the kicker—earning interest like a low-key loan shark.
Would I do it again?
Absolutely. With the right buyer and the right terms, owner financing wasn’t just the smartest dumb idea I ever had—it was a power move.
Key Takeaways: Selling with Owner Financing Doesn’t Mean Settling
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💰 You can make more over time through interest and tax breaks.
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📜 Structure matters—get everything in writing and make it airtight.
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🤝 Vet your buyer like your retirement depends on it (because it might).
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🧠 Think long game—this isn’t a quick exit, it’s a strategic shift.
If you’re thinking about selling your business and someone throws “owner financing” on the table, don’t run. Pause. Breathe. Do the math.
And maybe—just maybe—it’ll be the best offer you almost said no to.
Ready for a smart exit?
Don’t just sell your business. Sell it like a boss. 💼🔥