I was actually surprised to learn, that according to Chelsea Corporate, 6090% of business acquisitions in the U.K. involve some form of seller financing.

I will admit, I thought it would be a lower percentage than that, but I’m so glad to read this, which is actually great news if you’re looking to buy a business, especially if you’re looking to fund the acquisition using seller financing.

So, in short, you can buy a business using seller financing in the U.K..

The reason why I know you can do seller finance in the U.K., is not just because Chelsea Corporate says so, but because I sold one of my U.K. businesses with seller financing, and I bought another business, in the U.K. also, using seller financing too.

Plus, on my journey to buy the business I bought, I found other businesses where I’d negotiated seller financing, but for one reason or another, these other businesses didn’t proceed to completion.

This high statistic of deals done in the U.K. with seller financing, suggests to me, that more and more business owners are recognising that the only way they can sell their businesses, is for them to accept seller finance. Otherwise they simply won’t sell their businesses.

Which on the face, should make it easier for you to find the right business to buy, if it’s your aim to use some level of seller financing to fund the acquisition.

But since writing a course that teaches you how to buy a business, which includes how to fund the acquisition using seller financing, I’ve discovered that most people live on the misapprehension that it’s just the buyer who is benefitting from financing the acquisition in this way.

I’ve even been accused, by a business broker, that because I teach people how to buy businesses using seller financing, that this is “predatory”.

Why this comment surprised me more, is because the broker concerned is based in the US, and seller financing is on the face, more prevalent in the America, as many of businesses listed online include seller financing as part of their sales particulars.

Its comments like this one from a broker, why I feel it’s so important to understand how it is both sides of the transaction who benefit from seller financing, not just the buyer.

Which is why I created a video that discusses both sides of the transaction, which explains the benefits for the buyer and the seller.

You may then ask, is seller finance legal in the U.K.?

The answer is most definitely yes, and so long as you draw up a legally binding agreement, seller financing is not only legal in the U.K., it is also legally enforceable too.

Which is why it’s so important to arrange seller financing over a period in which the business can afford the repayments, otherwise the deal will fail, which is no good for either party.

If you have any questions on this topic about buying a business, or on any other aspect about the process involved in buying a business, please drop a comment below.

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