Year-over-year trends show an increase in seller financing across most market sectors.
I firmly believe that by not offering partial seller financing you are leaving money on the table, yes there is a risk you may not be able to collect (this can be mitigated to a certain extent in the contract), however better to have odds of collecting the additional money than not collecting at all. Contact me and I’ll explain.
Whenever we see more than 80% cash at close, that tells us we have a strong market. Buyers have to come to the table with more equity and senior debt, and less alternative financing, in order to win a deal, It will be interesting to see where cash at close trends in the year ahead. Normally, economic headwinds like these should trigger a decline, but the sheer amount of cash in the market right now could keep those numbers high.
Scott Bushkie, president of Cornerstone Business Services