This is the "Holy Grail" of no-money-down deals. Instead of paying the full price upfront, the seller acts as the bank.
You agree on a purchase price (e.g., $500k). You pay them monthly installments out of the business's future profits. buying an existing business with no money
Most people think you need a massive savings account to become a CEO. The reality? Many retiring "Baby Boomer" business owners are more worried about their legacy and a smooth exit than getting a 100% cash check on day one. This is the "Holy Grail" of no-money-down deals
You cannot do a no-money-down deal on a "turnaround" or a failing business. Why? Because the business generate enough profit to: Pay the seller/bank their monthly installment. Pay you a salary to live on. Keep the lights on and the business growing. You pay them monthly installments out of the
If the seller agrees to "finance" the remaining 10% as a secondary loan, you can effectively cover 100% of the purchase price without touching your savings.
If the business owns "hard assets," you can use them as collateral to get a loan the moment you take over.