Glossary
Seller Loan (Vendor Loan)
The previous owner defers part of the purchase price, and the successor pays it back in instalments from the company's earnings. This lowers the amount of capital needed and shows the bank that the seller believes in the business.
Related termEarn-outPart of the purchase price depends on how the company performs after the handover.Next Read moreFinancing a business succession: How to pay for the takeover.Next
FAQ
Frequently asked questions
What is a seller loan?
The previous owner defers part of the purchase price, and the successor pays it back in instalments from the company's earnings.
Want to take over a business?
Our programme gets you ready to take over a business, compact and tailored to you.
For successors