Financing the sale of your business can be a gamble: by Melissa Sayer

March 5, 2013

Most business owners reach a point when they are ready to retire or explore new challenges, but find that much of their net worth is tied up in their existing business.

Selling the business might be the obvious answer, but at what cost? Owner financing is a common alternative to a traditional cash sale. Rather than accepting only cash, the seller allows the buyer to pay some or all of the purchase price in the form of a promissory note to the owner. But is it a good idea? The owner may believe that he or she is selling the business, but in truth he or she is actually investing in the business’s future under the new owner. Read more: