Why is Seller financing and offering terms so important in selling a small business?

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Small business sales stats have shown that Sellers who ask for all cash on average receive only 70% of their asking price. On the other hand Sellers who offer and accept terms receive on average 86% of their asking price. Also, with reasonable terms the chances of finding a qualified buyer for your business will increase dramatically versus asking for cash only. In my opinion, offering some type of terms also re-assures nervous buyers that the Seller has genuine confidence in the viability of the business. Why else would you offer financing if you didn’t believe the business could support the debt service?

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