The majority of brokers (62%) consider seller financing very important in today’s market, especially when it comes to securing SBA loans. Buyers agree as 54% rate seller financing as either “extremely important” or “very important” to their purchase decision, while another 29% consider it “somewhat important.” Despite buyer expectations, many sellers remain hesitant to offer financing. Only 19% of business owners plan to offer seller financing when they exit, while 42% do not intend to provide this option, and 39% remain unsure.

“As many SBA lenders are tightening their reigns and narrowing their lending appetite, seller financing is more important than ever to help get deals completed successfully.” Terri Stallworth, business broker, Florida Business Exchange, Inc.

“Interest rates are still high and approvals on SBA funding is tighter so seller financing offers greater flexibility to get deals done more quickly,” adds John Inzilla of Murphy Business Sales.

Seller financing is increasingly important for deal structure, especially for businesses affected by tariffs where traditional lending may be tough to secure. It can also help offset higher interest rates, offers sellers a decent return, and makes deals more accessible for buyers. Sellers may also benefit from potential tax advantages by spreading out income over time rather than taking a lump-sum payout.

While seller notes are subordinate to primary financing, they typically include personal guarantees for added security to the seller. For buyers using SBA financing, seller notes benefit from the bank’s rigorous due diligence, which ensures buyers can reasonably service both loans.

"Seller financing is uncertainty's friend, and we live in uncertain times. My guess is that requests/demands for seller-financing will grow throughout the year,” says Max Friar of Calder Capital.