Sales price scale
What is this type of financing?
We speak of a balance of sale when a seller agrees to leave a percentage of the sale price in the company he has just sold, and in return undertakes to finance this amount on negotiated terms. This strategy is designed for buyers who wish to reduce the downpayment required when purchasing a business or property. buildingand sellers who wish to spread their income (interest or other) through the sale.
What are the special features of this financing?
- The seller receives only part of the sale price at signing, and lends the other part of the sale price to the buyer.
- Sellers often take out a 2nd mortgage on the company's assets.
- This type of investment may be valued as equity by financial institutions if the amount left in the business by the seller is not repayable before the period corresponding to the terms of the first mortgage lenders.
What are the advantages of this financing?
- For the buyer, the balance of sale means a lower initial investment and easier access to the market.
- For the seller, it's an opportunity to close a deal quickly and benefit from these advantages. cash to finance other projects.
- By receiving interest, the seller is in a sense making an investment with a guaranteed return. Otherwise, the company and its assets could be seized by the lending institution for the benefit of the seller.
- It can speed up the sale of a business for which there are few potential buyers.
- The balance of sale can be a tax opportunity for the seller, allowing him to spread the cost of the sale over a number of years. risk between the various parties.
In addition to helping you answer your questions, our experts at SADC can help you really analyze your situation. What's more, an analysis of your long-term needs and the determination of an appropriate financial strategy for your company can be developed at the same time.
See the list of different needs on the right. This financial product specifically meets the following needs:
- Acquiring, merging or taking over a company
- Buying commercial/industrial property
- Turn around the financial situation
Don't hesitate to apply to SADC for financing. We'll help you think through and implement your project. project.
YOU WISH...
- Acquiring, merging or taking over a company
- Improve your working capital / Growth
- Starting a business
- Developing a residential / commercial project
- Acquiring equipment
- Export your products or services
- Financing your tax credits
- Buying commercial/industrial property
- Turn around the financial situation
- Take equity out of your business
- Robotize / Automate / Improve IT
- Financing a startup
- Improve your company's environmental performance
- Carrying out a group project
- Strategic planning for your company's development
