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Question
Why is seller financing — where the seller accepts a promissory note for 20–30% of the purchase price — considered a positive signal by buyers?
1
It qualifies the deal for more favourable SBA loan terms
2
It indicates the seller has confidence the business will continue performing after the transition
3
It allows the buyer to avoid personal guarantee requirements on bank loans
4
It reduces the buyer's upfront cash requirement to zero
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