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💼 Creative Deal Structuring Cheat Sheet

5 Ways to Buy a Business Without the Bank

If you want to buy a business but don’t have tons of money or credit, you’re not out of the game. Below are 5 creative deal structures used by real buyers to get deals done — without traditional bank loans.

🏦 1. Seller Financing

How it works: The seller acts as the bank — you pay them monthly from profits.

When to use: Seller owns the business outright and is ready to exit.

Pro Tip: Negotiate interest-only payments 1–3 years → keeps cash flow strong.

Example: You buy a business for $400K. Seller agrees to $40K down and $360K financed over 8 years at 6% interest. Payments come from business profits.

✅ No banks involved
❌ Seller may want a decent down payment

💰 2. Earn-Out

How it works: You pay some now, and the rest based on future performance.
When to use: If you’re unsure the business will keep performing post-sale.
Example: $100k upfront + $150k over 3 years if the business stays profitable.

✅ Reduces risk
❌ Requires seller trust in ongoing success

🧾 3. Lease-to-Own

How it works: Rent the business short-term before committing to buy.
When to use: You want to “test drive” the business.
Example: Pay $2,000/mo. for 12 months, then apply $24k toward purchase.

✅ Try before you buy
❌ Seller may require strict terms

🤝 4. Equity Roll / Retained Equity

How it works: Seller keeps a piece of ownership while you operate the business.
When to use: You want support or need the seller’s trust to avoid upfront cost.
Example: You buy 70%, seller keeps 30% and exits later.

✅ Shared risk and knowledge
❌ Needs strong agreement and expectations

📉 5. Subject-To / Debt Assumption

How it works: You take over existing debt or obligations.
When to use: Seller is burned out or just wants out.
Example: You take over a business with $180k in debt but no cash needed upfront.

✅ Little or no money down
❌ You inherit existing financial obligations

🚀 Bonus Tips for Structuring Your Deal

  • Stack multiple strategies together
  • Always get a signed LOI or Purchase Agreement
  • Include fallback terms: balloon payments, seller consulting, or delayed closings

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